The Aussie dollar rallied in early European trading, boosted by weaker US dollar and overall solid Chinese data and broke above descending daily cloud top at 0.7539. Fresh bulls are pressuring key near-term barriers at 0.7555/65 (100SMA/top of five-day congestion). Sustained break here is needed to signal continuation of the bull-leg from 0.7369 (02 June trough), which is also the third wave of five-wave cycle from 0.7328 (09 May low), towards targets at 0.7588 (Fibo 61.8% of 0.7749/0.7328 descend) and 0.7604 (FE 123.6% of wave C).
Failure to clear 0.7555/65 pivots would signal prolonged congestion, with key near-term support at 0.7525 (200SMA) expected to hold dips and keep intact overall bullish structure.
Fed’s decision due later today is expected to give firmer direction signals.
Res: 0.7565, 0.7588, 0.7604, 0.7632
Sup: 0.7539, 0.7525, 0.7506, 0.7490
