Aussie extends recovery but key barriers are still intact
The Australian dollar holds in green for the third straight day and extends recovery from 0.6910 low through 10DMA (0.6980) and Fibo 61.8% of 0.7047/0.6910 (0.6995) on Friday.
Weaker US dollar (after rally on stronger than expected US CPI data stalled) helps Aussie dollar’s fresh bulls.
Mixed data from China, released earlier today, also provided some support.
Fresh bulls cracked psychological 0.70 barrier, but faced strong headwinds that may delay extension towards key targets at 0.7021 (100DMA) and 0.7035 (daily cloud top / weekly cloud base).
Daily MA’s (10/20/30/55) are in bullish setup, momentum and RSI head north and support advance, but momentum continues to weaken and may obstruct bulls.
Broken 10DMA now acts as solid support, guarding daily cloud base (0.6958) which needs to hold and keep bulls in play.
Res: 0.7000; 0.7021; 0.7035; 0.7047
Sup: 0.6980; 0.6958; 0.6940; 0.6910