The Aussie dollar is standing higher on Friday, boosted by better than expected Australian retail sales and positive outlook for Australian economy from RBA’s Monetary Policy statement.
In addition, Thursday’s strong downside rejection signaled that easing after multiple failure above 0.8000 handle might be losing traction.
Fresh strength today was also attracted by 4-hr cloud twist and dented initial barrier at 0.7971 (daily Tenkan-sen) close above which would bring the price into familiar area, where it was congested in past few sessions.
Overall structure is bullish and favors further upside, with final break and close above 0.8000 barrier (previous upticks failed to close above) to signal resumption of broader uptrend towards Fibo 50% barrier at 0.8164.
Conversely, fresh weakness through yesterday’s low at 0.7913 would expose lower pivot at 0.7877 (Fibo 38.2% of 0.7572/0.8065, reinforced by rising 20SMA) and risk deeper pullback on break.
US jobs data are expected to give fresh direction signal.
Res: 0.7979, 0.8000, 0.8042, 0.8065
Sup: 0.7933, 0.7913, 0.7877, 0.7818
