Aussie rallies on improved sentiment as top of thick daily cloud provides strong support
The Australian dollar bounces strongly in Asian / early European trading on Tuesday (up 1.3%), lifted by improved risk sentiment on speculations that China could ease Covid restrictions after recent protests.
Fresh bullish acceleration comes after repeated rejection at the top of thick daily cloud (0.6649) which continues to underpin near-term action.
Daily studies maintain strong bullish momentum and improved on the latest rally which pushed the price above converged 10/100DMA’s, bringing moving averages in full bullish setup.
Bulls look for retest of key resistance zone (0.6767/97) provided by Fibo 61.8% of 0.7136/0.6170 / recent tops of Nov 15/24, with firm break here to generate signal bullish continuation.
Extension of larger uptrend from 0.6170 (Oct 13) would focus targets at 0.6906/16 (Fibo 76.4% / Sep 13 high).
Daily cloud top marks strong support, guarding lower pivots at 0.6584/52 (Nov 21 trough / Fibo 38.2% of 0.6170/0.6797) loss of which would weaken near-term structure.
Res: 0.6780; 0.6797; 0.6894; 0.6906
Sup: 0.6698; 0.6649; 0.6614; 0.6584