Recovery picked up on Tuesday, boosted by fresh risk appetite and hawkish stance from the Reserve Bank of Australia.
The minutes of RBA’s July policy meeting, released today, showed the central bank is on track for more policy tightening, as interest rates, despite recent hikes, are still low to curb rising inflation.
Fresh bullish acceleration broke above daily Kijun-sen (0.6875) and cracked pivotal Fibo resistance at 0.6911 (38.2% of 0.7283/0.6681 bear-leg), with break here to add to bullish signals and strengthen near-term bullish stance.
Rising 14-d momentum is breaking into positive territory that underpins the action, along with 5/10/20DMA’s in bullish setup.
Broken 20DMA (0.6840) reverted to support which should keep the downside protected and maintain positive near-term bias.
Res: 0.6911; 0.6964; 0.6982; 0.7000
Sup: 0.6874; 0.6840; 0.6823; 0.6797
