The Australian dollar stands at the back foot on Friday, following previous day’s strong upside rejection and repeated failure to close above cracked key barriers at 0.7030/35 (100DMA / daily cloud top).
Strong bullish momentum keeps the pair afloat just under pivotal resistance zone which continues to produce strong headwinds to larger bulls.
US jobs data are in focus and expected to generate direction signal upon release.
Stronger than expected figures may hurt Aussie dollar and send it through psychological 0.70 support (reinforced by rising 10DMA) towards strong support zone at 0.6965/50 (Fibo 38.2% of 0.6831/0.7047 / 55DMA / converged 20/30DMA’s).
Conversely, the pair may make eventual clear break through 0.7030/35 pivots and shift focus towards 200DMA (0.7096) if US jobs data disappoint.
Res: 0.7030, 0.7035, 0.7068, 0.7096
Sup: 0.7005, 0.6996, 0.6965, 0.6950
