The Aussie dollar regained traction and recovered the most of overnight’s losses, maintaining overall bullish tone. Strong two-day bullish acceleration was capped by Fibo 61.8% of 0.8065/0.7807 pullback at 0.7970 zone yesterday, with overnight’s pullback triggered by North Korea news, as strong sales of AUDJPY dragged lower the AUDUSD pair. Dip was contained by the base of thickening hourly cloud which continues to underpin recovery which returned near yesterday’s high and neutralized downside threats. However, break and close above Fibo barrier at 0.7967 is required to confirm bullish continuation towards 0.80000/65 targets, signaled by yesterday’s break above the triangle pattern. Meanwhile, overbought slow stochastic on daily chart may trigger extended consolidation before bulls resume. Plethora of strong supports at 0.7930 zone, comprising of hourly cloud top / converged 10/30SMA’s and daily Tenkan-sen, should keep the downside protected.
Res: 0.7973, 0.8000, 0.8042, 0.8065
Sup: 0.7936, 0.7927, 0.7905, 0.7864
