Aussie bounces strongly after rejection at rising cloud top
The AUDUSD rebounds strongly on Monday, lifted by further rise in iron ore, one of Australia’s top contributors to earnings from exports, as fresh signals of stronger recovery of China’s demand boosted sentiment.
Daily chart shows improving conditions after Friday’s action faced strong downside rejection at the top of rising daily cloud (daily Doji with very long tail), pointing to strong bids.
Fresh recovery acceleration is pressuring pivotal barrier at 0.6920 (daily Tenkan-sen /50% retracement of 0.7028/0.6811 bear-leg) break of which would further firm near-term structure and open way for stronger recovery.
However, signals on daily chart are still mixed and fresh bulls need extension through pivots at 0.6945/77 (Fibo 61.8% / 76.4% of 0.7028/0.6811) to neutralize underlying bears and expose targets at 0.7000/28 (psychological / Feb 14 peak).
Caution on failure at these levels that would keep the downside vulnerable, despite strong support from rising daily cloud.
Res: 0.6920; 0.6945; 0.6977; 0.7000
Sup: 0.6862; 0.6846; 0.6804; 0.6780