Aussie hit new 4-month high vs greenback after final break of 200DMA, but news from China slow bulls
The Australian dollar maintains bullish tone and extended rally to new 4-month high at 0.6774 on Monday, inflated by President Trump’s mild response on Friday over Hong Kong case, but eased from new high on news that China paused some purchases of some agricultural goods from the US that soured a bit strong risk mode.
Daily studies remain in full bullish setup and supportive as strong positive signal was generated on eventual close above 200DMA (0.6654) on Friday, after the indicator capped the action for three consecutive days.
Today’s break (and likely) close above Fibo barrier at 0.6672 (76.4% of 0.7032/0.5509) would add to positive signals for attack at weekly cloud base (0.6848).
Near-term bias is expected to remain with bulls as long as the price action stays above 200DMA.
Res: 0.6635; 0.6657; 0.6672; 0.6684
Sup: 0.6588; 0.6560; 0.6537; 0.6507