The Australian dollar resumes higher on Tuesday after bulls paused on Monday, on headwinds from pivotal Fibo barrier at 0.7416 (76.4% retracement of 0.7555/0.6967).
Today’s break through this barrier, generated fresh signal of continuation of recovery leg from 0.70 zone, where attempts to break lower failed twice (Dec 2021 / Jan 2022), forming a double-bottom pattern.
Risk-sensitive Aussie benefited from gains of Asian stock and was also underpinned by strong gains in AUDJPY, as yen was hit by signals that the BOJ will keep its interest rates unchanged, while Fed and BoE already started tightening their policies.
Close above 0.7416 Fibo level would confirm positive signal for advance through initial barrier at 0.7441 (Mar 7 spike high) that would expose targets at 0.7506 (Fibo 123.6% projection of the upleg from 0.7165), 0.7546 (Fibo 138.2%) and 0.7555 (Oct 28 peak).
Bullish setup of daily MA and strong positive momentum support the action, with initial supports at 0.7365/50 zone) and broken Fibo 6.8% (0.7331) expected to contain potential dips and keep bulls in play.
Res: 0.7441; 0.7506; 0.7546; 0.7558.
Sup: 0.7416; 0.7375; 0.7350; 0.7331.