Bulls extend above 0.70 and re-focus key barriers at 0.7032/35
The Australian dollar jumped above 0.70 barrier in mid-European trading on Wednesday, after quiet trading in Asia / early Europe.
The pair extends recovery from the previous day, as Monday’s strong fall and Tuesday’s action were repeatedly contained by daily cloud base, showing resilience on RBA’s rate cut and global growth concerns.
Rising bullish momentum on daily chart supports recovery, which was additionally underpinned by today’s formation of 10/55 DMA’s bull-cross.
Key barriers at 0.7032/35 (100DMA / daily cloud top) are back in focus, with sustained break here needed to signal continuation of recovery leg from 0.6831 (18 June low).
Repeated failure to break higher would keep near-term price action moving within thick daily cloud and without clear direction.
Res: 0.7022; 0.7035; 0.7048; 0.7068
Sup: 0.7000; 0.6985; 0.6975; 0.6956