Australian dollar extends rally into third straight day, supported by better than expected Australia’s jobs data in March, which adds to bullish sentiment, boosted by Wednesday’s below expectations US CPI data.
Fresh advance cracks Fibo 61.8% retracement of 0.6793/0.6619 pullback and contribute to signals of higher low at 0.6619, though the action faces another significant obstacle at 0.6743 (200DMA).
Sustained break here is needed to reinforce near-term bullish structure for test of the base of thick daily cloud (0.6769), where bulls may face increased headwinds on the way to full retracement of 0.6793/0.6619 bear-leg.
Technical studies on daily chart are improving (moving averages 10/20/30 turned to bullish setup and 14-d momentum is heading north after returning to positive territory) and support the action.
Today’s close above broken daily Tenkan-sen (0.6706) is needed to keep bulls in play.
Res: 0.6743; 0.6769; 0.6779; 0.6793.
Sup: 0.6726; 0.6706; 0.6678; 0.6660.