Aussie keeps bullish tone and attacks again key barriers
Australian dollar regained traction on Thursday and probing again through key 0.6680/90 resistance zone (daily cloud base / Fibo 61.8% of 0.6818/0.6458 / 200DMA) following a false break on Wednesday.
The latest hawkish comments from Australia’s central bank chief, who signaled more rate hikes to ease rising price pressures despite growing risk on stronger economic downturn on high borrowing cost, provided fresh boost to Aussie dollar.
Near-term bias remains with bulls despite warnings from overbought daily studies and Wednesday’s bearish daily candle with long upper shadow, which generated initial risk of stall of six-day rally, however, near-term bulls require confirmation on clear break of pivotal 0.6680/90 zone to signal continuation of bull-leg from 0.6458 (2023 low, posted on May 31) and expose targets at 0.6733/41 (Fibo 76.4% / 100DMA) guarding key near-term barrier at 0.6818 (May 10 top).
Caution on repeated upside rejection today, which would signal that bulls are running out of steam, although bullish bias still seen while the action stays above 0.6638 (broken Fibo 50%).
Increased downside risk expected on drop below 20DMA (0.6604).
Res: 0.6690; 0.6717; 0.6733; 0.6746
Sup: 0.6638; 0.6604; 0.6586; 0.6543