Strong rebound extends into second day and eyes key barriers
The Australian dollar extends strong recovery, which was sparked by unchanged RBA on Tuesday and approaches round-figure barrier at 0.6800 (also 21 Aug high) in European trading on Wednesday.
Australian Q2 GDP data were released on Wednesday and came in line with expectations, adding to positive sentiment and further inflating the Aussie.
Daily momentum broke into positive territory and 10/20MA’s turned to bullish setup, supporting near-term action.
Bulls cracked falling 30DMA (0.6785) with firm break here and 0.6800 barrier to open way for recovery extension towards 0.6820 zone (early Aug congestion tops) and 0.6831 pivot (Fibo 38.2% of 0.7082/0.6677 / 18 June former low), break of which is needed to generate initial reversal signal.
Broken 20DMA (0.6761) and 10DMA (0.6748) mark pivotal support and only close below 10DMA would weaken near-term structure and signal recovery stall.
Res: 0.6800; 0.6820; 0.6831; 0.6880
Sup: 0.6772; 0.6761; 0.6748; 0.6706