Fresh weakness of the greenback pushed the Aussie dollar higher on Monday, neutralizing downside threats on Friday’s close in red which signaled formation of reversal pattern.
Fresh acceleration higher turns near-term focus towards psychological 0.8000 barrier again, as bulls ignore for now strongly overbought daily studies.
However, the pair may hold within consolidation range, ahead of Australian inflation data in early Wednesday and following FOMC policy decision due later in the day, looking for firmer signals.
Sustained break above 0.8000 barrier would spark fresh upside extension towards 0.8164 (14 May 2015 high/50% of larger 0.9503/0.6825 descend).
Conversely, increased downside risk could be expected on renewed weakness through Friday’s low at 0.7874 which would expose lower pivot at 0.7830 (rising 10 SMA/Fibo 38.2% of 0.7572/0.7988 upleg).
Res: 0.7967, 0.7988, 0.8000, 0.8044
Sup: 0.7900, 0.7874, 0.7830, 0.7800
