The Aussie dollar accelerated higher in early Wednesday’s trading and hit 1 ½ month high at 0.7672, boosted by better than expected Australian GDP, which rose 1% in Q1, beating the forecast at 0.8%.
Annualized figure came at 3.1% vs expected 2.8%.
Fresh strength fully retraced Tuesday’s dip and generated bullish signal on penetration of falling daily cloud (cloud base lays at 0.7642) and probe above 0.7660 (Fibo 61.8% of 0.7812/0.7412 descend). Bulls pressure next pivotal barriers at 0.7675 (bear-trendline drawn off 0.7988, 6 Feb high) and 0.7688 (Fibo 38.2% of 2018 0.8135 / 0.7412 fall), break of which confirm strong bullish signal for continuation of recovery leg from 0.7412 low.
Bullish setup of daily MA’s which created bull-crosses (5/10, 20/30SMA’s) and north-heading momentum support scenario. Broken 55 SMA (0.7612) holds today’s action and marks solid support (reinforced by rising 5SMA in attempt to form bull-cross) which should keep the downside protected.
Res: 0.7660, 0.7672, 0.7688, 0.7703
Sup: 0.7639, 0.7612, 0.7594, 0.7579
