Short-covering looks for extension on break above 20DMA and Fibo 61.8% barrier
The Australian dollar holds in red in early Monday’s trading, with minor reaction on government’s A$130 billion job-saving package.
The action remains capped by falling 20 DMA (6200) with overbought daily stochastic suggesting consolidation.
On the other side, momentum continues to rise and supporting the advance, with shallow consolidation, ideally to be contained above rising 5DMA (0.6051) and extended dips to remain above broken psychological 0.60 level.
Bulls look for break above 20DMA and key Fibo barrier at 0.6235 (61.8% of 0.6684/0.5509) to generate strong bullish signal for continuation of recovery rally from 0.5509 (19 Mar low).
Res: 0.6200; 0.6235; 0.6281; 0.6300
Sup: 0.6112; 0.6097; 0.6051; 0.6022