Aussie extends recovery as demand for greenback eases
The Australian dollar extends bounce from new nearly 18-year low at 0.5509 on Friday, registering gains of 3.5% since Friday’s opening.
Eased demand for US dollar on the latest measure from Fed, downbeat US jobless claims and stronger than expected Australian labor data, helped recovery.
Fresh advance cracked important Fibo barrier at 0.5958 (38.2% of 0.6685/0.5509) which could generate bullish signal for extended advance on close above and expose next pivotal barriers at 0.60 (psychological), 0.6061 (falling daily Tenkan-sen) and 0.6091 (50% retracement of 0.6685/0.5509.
Daily momentum turned north and stochastic broke from oversold territory, adding to positive signals.
Broken 4-hr 20MA now offers initial support at 0.5862, followed by north-turning 10MA (0.5779), which marks lower pivot, loss of which would sideline fresh bulls.
Res: 0.5958; 0.6000; 0.6061; 0.6091
Sup: 0.5862; 0.5779; 0.5663; 0.5600