The Australian dollar maintains positive tone on Monday and extends recovery, following Friday’s strong rally (up 1.6%) which completed reversal pattern on daily chart.
Fresh advance probes through pivotal barrier at 0.7131 (Fibo 61.8% of 0.7393/0.6706 descend), clear break of which would generate bullish signal for extension towards strong resistance zone daily between 0.7170 and 0.7222 (30/55/100SMA/daily cloud).
Positive sentiment is supported by improving daily techs, however, overbought conditions warn.
Focus turns towards US/China trade talks and fresh news are expected to trigger stronger action.
Broken daily 10SMA/Kijun-sen mark pivotal support at 0.7050, loss of which would be bearish signal.
Res: 0.7141, 0.7176, 0.7186, 0.7222
Sup: 0.7108, 0.7050, 0.7000, 0.6969
