Near-term bias remains with bulls but needs further evidence for confirmation
The Australian dollar regains traction on Thursday and pressures psychological 0.70 barrier, with near-term action being supported by broken 30SMA (0.6957).
Wednesday’s close in red after repeated failure to close above cracked double-Fibo barrier at 0.6990/94, had so far limited negative impact, as the greenback remains weighed by signs of widening trade conflict.
Near-term action is expected to remain biased higher while above 30SMA, but needs close above 0.6990/94 Fibo’s and 0.70 barrier to signal continuation of recovery leg from 0.6864 base.
Strong bullish momentum on daily chart supports scenario, although weighed by stochastics’ reversal from overbought zone.
Loss of 30SMA would generate initial bearish signal, with stronger bearish pressure expected on extension below rising 10SMA (0.6943).
Friday’s US jobs data could provide fresh direction signals.
Res: 0.6994; 0.7007; 0.7029; 0.7048
Sup: 0.6957; 0.6943; 0.6928; 0.6898