AUDUSD – fresh bullish extension pressures daily cloud top at 0.7816
The Aussie dollar extended steep rally on Thursday and cracked psychological 0.7800 barrier, en-route to key resistance at 0.7816 (daily cloud top).
Broader greenback’s weakness keeps the Aussie supported, with bulls so far ignoring strongly overbought conditions on daily chart studies.
Sustained break above cloud top will be strong bullish signal for extension of recovery leg from 0.7500 (11 Dec low) towards next key barriers at 0.7886/0.7897 (Fibo 61.8% of 0.8124/0.7500 descend / 13 Oct lower top).
However, corrective action could be anticipated in the near-term on overbought daily RSI / slow stochastic but no firmer bearish signals being generated so far.
Rising daily Tenkan-sen which tracks the advance since mid-Dec, offers solid support at 0.7723.
Res: 0.7816; 0.7865; 0.7886; 0.7897
Sup: 0.7761; 0.7723; 0.7694; 0.7660