AUDUSD hit new high but corrective action could be anticipated in the near term
The Aussie dollar stays firm and hit new high at 0.7856 (the highest since Oct 20) on Thursday, boosted by better than expected China Services PMI (Dec 53.9 vs 51.8 f/c).
Thursday’s action was so far shaped in long-legged Doji, signaling no clear direction, with initial signal of fatigue of larger and steep uptrend to be expected on daily close in Doji.
Strongly overbought daily studies also warn of correction but without firmer signal so far.
However, the price continues to hold above daily cloud, keeping bullish bias for extension towards strong resistances at 0.7886/0.7897 (Fibo 61.8% of 0.8124/0.7499 descend / 08 Oct lower top).
Return and close below daily cloud top would generate initial signal of correction.
Res: 0.7856; 0.7886; 0.7897; 0.7977
Sup: 0.7816; 0.7805; 0.7777; 0.7755