The Aussie dollar moved higher in Asian trading on Monday, benefiting from US – China trade news, but was unable to clearly break above falling 20SMA (0.7520) so far.
Stronger action could be anticipated after trading in past two days ended in Dojis and signaled strong indecision, while falling 20SMA repeatedly capped.
Fresh bullish sentiment on trade data could drive the pair higher, however, close above 20SMA is needed to generate bullish signal and open way towards key near-term barrier at 0.7565 (double-top/Fibo 38.2% of 0.7812/0.7412 descend).
Rising bullish momentum on daily chart supports the notion, as converged 5/10SMA’s mark solid support at 0.7503 and hold today’s action. Only close below here would weaken near-term structure and risk further easing.
Res: 0.7520, 0.7547, 0.7565, 0.7592
Sup: 0.7503, 0.7488, 0.7447, 0.7433
