Bulls pressure key resistance zone but risk of stall exists
The Australian dollar extends advance above psychological 0.70 barrier on Friday, as bulls remain uninterrupted in expectations of a positive outcome of Trump / Xi meeting in G20 summit.
Bulls approach very strong resistance zone between 0.7022 and 0.7041, marked by 7 June high / daily cloud top / 100DMA and the base of thick falling weekly cloud.
The pair is on track for the second straight bullish week that provides additional positive signal, but needs clear break above these barriers to signal stronger recovery.
Caution on possible stall at this area (as strongly overbought stochastic adds to the strength of barriers) that would weaken near-term structure and risk fresh bearish acceleration.
Res: 0.7022; 0.7035; 0.7041; 0.7068
Sup: 0.7000; 0.6985; 0.6978; 0.6976