The Australian dollar remains firm on Monday, driven by fresh weakness of the greenback after US jobs data disappointed expectations for stronger pace of increasing US interest rates this year. Extension of Friday’s strong rally, after repeated downside attempts were contained by 100SMA and formed a higher base at 0.7771, generated bullish signal on eventual break and close above the tops of three-day congestion. Fresh bulls extended in the middle of thick daily cloud and spiked near pivotal barrier at 0.7882 (Fibo 61.8% of 0.7988/0.7712 descend / 55SMA). Daily techs are improving as MA’s are turning into bullish configuration and 14-d momentum is heading north, on track to break into positive territory and underpin near-term action. Close above 0.7882 is needed to confirm bullish continuation towards 0.7923 (Fibo 76.4%) which would expose key near-term barrier at 0.7988 (daily cloud top / 16 Feb high). The notion is supported by last week’s bullish engulfing which signals stronger recovery. However, bulls are showing hesitation ahead of 0.7882 pivot and may hold in extended consolidation before moving higher. Broken 20SMA (0.7837) and daily cloud base (0.7817) mark solid supports which are expected to hold and keep fresh bulls intact.
Res: 0.7862, 0.7882, 0.7923, 0.7935
Sup: 0.7847, 0.7836, 0.7817, 0.7793
