The Australian dollar remains firm on Friday and attempts towards psychological 0.70 barrier after rallying 1% on Thursday, underpinned by higher commodity prices and growing expectations that the Fed would further ease the pace of its policy tightening.
The pair is in strong uptrend for the third straight week, with break of 0.70 pivot to add to bullish signals as recent acceleration broke above 50% retracement of 0.7661/0.6170 fall.
However, break through 0.70 pivot is unlikely to be straight as daily stochastic is overbought and 14-d momentum indicator turned sideways, implying that price action would take a breather for consolidation.
Broken Fibo barrier at 0.6915 offers initial support, with extended dips expected to find ground above rising daily Tenkan-sen (0.6840) to keep bullish structure intact and offer better buying opportunities.
Sustained break of 0.70 pivot would expose targets at 0.7076/0.7091 (Fibo 61.8% / base of weekly cloud). Only break and close below daily Kijun-sen (0.6811) would weaken near-term tone and allow for deeper pullback.
Res: 0.7000; 0.7076; 0.7091; 0.7136.
Sup: 0.6944; 0.6915; 0.6863; 0.6811.
