Surge above 0.70 barrier signal continuation of recovery from 0.6864 base
The Australian dollar rallied to one-month high on Friday, propped by downbeat US jobs data that sent the greenback lower across the board.
The pair eventually broke above key barriers at 0.6990/94 (double-Fibo) and psychological 0.70 barrier, after triple-failure to firmly break higher in past few sessions.
Fresh bulls are establishing above 0.70 handle and on track for the biggest weekly gains since early Jan.
Weekly close above 0.6990/0.7000 zone pivots is needed to confirm continuation of recovery rally from 0.6864 base.
Bulls pressure immediate barrier at 0.7028 (sideways-turning 55SMA) and could extend towards key barriers at 0.7058/70 (base of falling daily cloud / 30 Apr lower high / 100SMA).
Increased expectations fir Fed rate cut after weak jobs data, as well as formation of daily Tenkan-sen / Kijun-sen bull-cross, fuel Aussie’s advance, however some price adjustment could be anticipated as daily momentum turned sideways.
Broken 30SMA (0.6956) is expected to contain extended downticks and maintain bullish bias.
Res: 0.7028; 0.7058; 0.7070; 0.7095
Sup: 0.7000; 0.6990; 0.6956; 0.6945