The Australian dollar shrugged off March’s weaker-than-expected CPI as risk appetite grew.
The pair has met stiff selling pressure at the supply zone around 0.7820, the origin of last month’s sell-off. However, the Aussie has established a solid base above 0.7700.
As the RSI bounces back into the neutral area from the sub-30 level, the bullish momentum from 0.7725 is a sign of buying the dip.
A breakout above 0.7815 may trigger a runaway rally to 0.7950, a prerequisite to resuming the fourteen-month-long uptrend.
