The Aussie dollar extended bounce from last week’s correction low at 0.7489 on Monday and returned above a cluster of strong supports between 0.7531 and 0.7504 (consisting of 55 / 100 and 200SMA’s) that was cracked last week but without clear break lower.
Fresh weakness of the US dollar and strong bullish signals that are generating on the daily chart, suggest further recovery.
Rising daily cloud that so far contained pullback from 0.7739 peak, continues to underpin, with 55/100SMA Golden Cross and another one forming on attempts of rising 55SMA to break above 200SMA, are also seen as supportive factors, along with slow stochastic bullish divergence and reversal from oversold territory.
Extended recovery tested 0.7584 pivot so far (Fibo 38.2% of 0.7739/0.7489 pullback), with next two triggers (daily Tenkan-sen at 0.7593 and daily Kijun-sen at 0.7614) laying above, break f which to generate stronger signals that corrective phase might be over.
Top of rising daily cloud currently lies at 0.7515 and should contain extended corrective dips to keep near-term bulls in play.
Res: 0.7586, 0.7593, 0.7614, 0.7643
Sup: 0.7531, 0.7515, 0.7489, 0.7448
