Aussie approaches 2020 high as risk rally extends
The Australian dollar accelerated higher in early European trading on Tuesday, initially boosted by RBA’s minutes which showed the central bank is going to keep rates unchanged in current environment and that negative rates are extraordinary unlikely.
Adding to positive signals was eventual agreement of EU leaders about 750 billion Euros recovery fund that boost risk sentiment and China’s post-pandemic recovery.
Monday’s close above 0.70 barrier (also near Fibo 76.4% of 0.7064/0.6776) was bullish signal, which added to positive technical and fundamental environment.
Bulls pressure key barrier at 0.7064 (2020 high, posted on 10 June), break of which would unmask next significant resistance at 0.7132 (Fibo 61.8% of 0.8135/0.5509, Aug 2018 / Mar 2020 fall).
Dip-buying above 0.7000/0.6983 (psychological / rising 10DMA) remains favored.
Res: 0.7064; 0.7100; 0.7132; 0.7205
Sup: 0.7037; 0.7000; 0.6983; 0.6945