The Australian dollar rose in early Thursday’s trading after April’s labor report showed Australia’s jobless rate fell for a sixth consecutive month and hit the lowest since April 2020 at 5.5%, but employment declined by 30,600 against expected 15,000 increase.
Fresh advance emerged after downside attempts repeatedly stalled at important Fibo support at 0.7711 (50% of 0.7531/0.7890, reinforced by 55DMA) where the higher base is forming. Rising bullish momentum on daily chart supports the recovery which eyes pivotal barriers at 0.7765/69 (Fibo 38.2% of 0.7890/0.7688/daily cloud top).
Firm break here would add to positive signals and strengthen near-term structure for test another key level at 0.7813 (Fibo 61.8%/May 18 lower top, violation of which would confirm a higher base and signal an end of 0.7890/0.7688 correction.
Caution on failure to break above daily cloud that would keep the downside vulnerable.
Res: 0.7769, 0.7789, 0.7813, 0.7856
Sup: 0.7736, 0.7711, 0.7688, 0.7669
