The Australian dollar stands at the front foot on Monday and cracked key barriers at 0.7095/97 (converged falling 10/20SMA’s), following strong downside rejection on Friday, when the pair spiked to new low at 0.7020 (the lowest since late Jan 2016), but losses were short-lived. Close above MA’s and Fibo barrier at 0.7106 (61.8% of 0.7159/0.7020) would generate bullish signal for further recovery. Conflicting daily indicators (north-heading slow stochastic/weakening momentum) and mixed setup of daily MA’s, so far lack stronger direction signal. Broken 5SMA (0.7081) marks initial support, loss of which would weaken near-term structure.
Res: 0.7108, 0.7126, 0.7147, 0.7159
Sup: 0.7081, 0.7055, 0.7040, 0.7020
