Renewed strength attacks again key daily cloud top barrier
The Aussie dollar rallied on Wednesday after neutral tone from RBA Deputy Governor Debelle’s speech that disappointed those expecting more dovish stance.
Adding to positive tone was release of upbeat Australian consumer sentiment (Apr 1.9% vs Mar -4.8%).
Fresh bulls broke above 100SMA (0.7143) attack daily cloud top (0.7153) again, after recovering all losses of the previous day and neutralizing negative signal from Tuesday’s bearish Doji candle with long upper shadow.
Fresh bullish momentum on daily chart supports the action, but overbought stochastic warns of possible repeated stall.
Sustained break above daily cloud would open way towards targets at 0.7168 (21 Mar spike high) and 0.7183 (Fibo 61.8% of 0.7295/0.7003 fall).
Repeated failure at daily cloud top would risk fresh easing as cloud turns lower and next week’s twist would be magnetic, however bullish bias will remain in play while the price holds above 55SMA (0.7117).
Res: 0.7168; 0.7183; 0.7207; 0.7226
Sup: 0.7143; 0.7117; 0.7107; 0.7091