Steep ascend extends into fifth straight day and cracks important barriers
The Australian dollar hit five-week high on Monday in extension of last week’s steep rally (the pair gained 1.8% for the week).
Bulls were underpinned by hopes of easing tensions in US/China trade conflict and additionally boosted by upbeat Australian home loans data (July 5.0% vs June -0.9%).
Rising bullish momentum and multiple MA’s bull-crosses (5/10; 5/20; 5/30; 10/20) on daily chart, add to positive outlook, as fresh bulls crack strong resistances at 0.6874/79 (55DMA / 50% retracement of 0.70820.6677 descend).
Firm break here would generate bullish signal for extension towards falling thin daily cloud (spanned between 0.6896 and 0.6915); 100DMA (0.6910) and Fibo 61.8% of 0.7082/0.6677 (0.6927) in extension.
Strongly overbought daily stochastic continues to trend higher and lacks any negative signal for now, but some consolidative action should be anticipated in the near-term.
Top of rising hourly cloud (0.6840) and broken Fibo 38.2% (0.6831) mark solid supports, which should ideally contain dips and keep bulls intact.
Res: 0.6879; 0.6910; 0.6927; 0.6955
Sup: 0.6840; 0.6831; 0.6821; 0.6800