The Aussie rallied to new 2 ½ month high at 0.7886 on Thursday, boosted by upbeat Australian retail sales data (Nov 1.2% vs 0.4% f/c and 0.5% in Oct) as well as weaker US dollar on reports China could slow purchases of US treasuries.
Fresh bullish acceleration completed shallow 0.7874/0.7807 correction which was contained by rising 10SMA and formed higher base at 0.7807 (09/10 Jan lows).
Target at 0.7886 (Fibo 61.8% of 0.8124/0.7500) was tested, with break and close above it, needed to generate bullish signal. Another bullish signal will be generated on weekly chart on close above falling 200SMA (currently at 0.7853).
Sustained break above 0.7886 and 0.7897 (13 Oct lower top) is needed to signal bullish continuation towards 0.7977 (Fibo 76.4%) and psychological 0.8000 barrier.
Rising 10SMA (0.7835) marks initial support and holds today’s action, guarding lower pivot at 0.7807, loss of which would signal deeper correction.
Res: 0.7886; 0.7897; 0.7916; 0.7941
Sup: 0.7835; 0.7807; 0.7791; 0.7774