Australian dollar surged 0.9% vs Kiwi dollar in Wednesday’s morning, lifted by fresh hawkish signals that the RBA may opt for a rate hike next month, after Australia’s inflation rose above expectations and hit new multi-month high in May.
A full-figure rise broke through three Fibo barriers (38.2%; 50% and 61.8% retracement of 1.1030/1.0732 downtrend) and pressuring the top of daily cloud (1.0943).
Breach of narrowing cloud top to expose targets at 1.0959 (Fibo 76.4%) and 1.10 (psychological; Fibo 100% expansion of the current third wave of five-wave cycle from 1.0732 higher base).
Daily technical indicators are in full bullish setup but about to enter overbought territory, which may slow bulls for consolidation / limited correction.
Supports at 1.0916/1.0890 zone should contain dips and keep larger bulls intact.
Res: 1.0959; 1.1000; 1.1.1030; 1.1062.
Sup: 1.0916; 1.0890; 1.0846; 1.0825.
