Aussie holds firmly in green for the third straight day, lifted by weaker US dollar, after more cautious than expected tone from Fed chief Powell disappointed investors.
Bulls probe above 0.73 level following Wednesday’s 1.04% acceleration, boosted by bullish signal, generated on close above the top of thick daily cloud (0.7274, also 50% retracement of 0.7555/ 0.6993 descend).
Bullish daily techs support the advance, with Wednesday’s close above previous recovery peak (0.7277) posted on Dec 31, signaling higher low at 0.7129 (Jan 7) and continuation of recovery from 0.6993 (2021 low, posted on Dec 3).
Bullseye targets at 0.7340/80 (Fibo 61.8% of 0.7555/0.6993 / Fibo 38.2% of 0.8007/0.6993) with extension towards 200DMA (0.7425)not ruled out, as formation of bullish engulfing pattern on the weekly chart adds to positive signals. Cloud top now offers solid support which is expected to hold and keep bulls intact.
Res: 0.7340; 0.7380; 0.7400; 0.7425.
Sup: 0.7286; 0.7274; 0.7232; 0.7208.