Signals that Australia is about to relax some restrictions boost risk sentiment
The Australian dollar was among top gainers in early Monday’s trading, as parts of Australia are expected to relax some restrictions, boosting risk sentiment.
The pair advanced slightly over 1% in Asia / early Europe and probed above former high at 0.6444 (14 Apr) to hit new 1 ½ month high at 0.6469.
Last week’s break above daily cloud was initial bullish signal, which was boosted by today’s extension above 0.6407 (Fibo 76.4% of 0.6684/0.5509) and 0.6444 high.
Close above the latter is needed to confirm signal and open way towards 0.6572 (100DMA) with key barriers at 0.6684 (9 Mar high) and 0.6692 (200DMA) expected to come in focus.
Converged 5/10/55DMA’s formed multiple bull-crosses and offer solid supports at 0.6362/45 zone which needs to hold and keep bulls intact.
Res: 0.6469; 0.6500; 0.6572; 0.6612
Sup: 0.6406; 0.6381; 0.6362; 0.6345