AUDUSD extends rally, underpinned by rising metals’ prices
The Aussie dollar remains well supported and hits fresh two-month high at 0.7768 on Wednesday’s strong bullish acceleration, in extension of four-day rally, supported by rally in metals prices.
Today’s rally broke above pivotal barrier at 0.7738 (Fibo 38.2% of 0.8124/0.7500 descend) and pressures 100SMA (0.7779), break above which will open next key barrier at 0.7816 (daily cloud top).
Bullish setup on daily chart suggests further advance, as bulls so far ignore strongly overbought conditions of slow stochastic.
However, corrective action could be anticipated in the near-term (daily RSI is approaching overbought territory) with signs of stall expected on approach to daily cloud top.
Corrective dips should be contained above 200SMA (0.7692) to keep bullish structure intact.
Res: 0.7779; 0.7816; 0.7865; 0.7886
Sup: 0.7738; 0.7723; 0.7692; 0.7684