AUD/USD outlook: Strong recovery extends into second straight day
AUD/USD
Australian dollar extends strong rally into second straight day, lifted by weaker US dollar on debt ceiling deal, signals that China is working on new property market support package, expected wage raise as from July 1 and higher than expected April inflation which adds to bets about further rate hikes.
Strong bullish acceleration reached nearly 50% retracement of 0.6818/0.6458 bear-leg, improved near-term structure, although 14-d momentum indicator is still in the negative territory a stochastic is entering overbought zone, which may slow bulls on approach to pivotal barriers at 0.6680 (Fibo 61.8% / daily cloud base).
Potential dips should offer better buying opportunities while holding above broken Fibo 38.2% barrier at 0.6595.
Caution on extension and close below 10DMA (0.6557) which will sideline bulls.
Res: 0.6638; 0.6680; 0.6694; 0.6733.
Sup: 0.6595; 0.6557; 0.6543; 0.6490.
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Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
