The Aussie dollar is regaining traction and returns above 0.7600 handle, after dipping to 0.7579 low, following gap-lower opening on Monday. Last Friday’s strong rally which broke and closed above falling trendline (tracked the downtrend since Mid-Sep) was strong bullish signal, as rally has nearly fully retraced last week’s 0.7644/0.7551 fall. Fresh gains pressure cracked 20SMA barrier (currently at 0.7608) close above which is needed to generate fresh bullish signal for extension of recovery rally from 0.7551, towards strong barrier at 0.7691 (200SMA). Failure to clear 20SMA would keep the downside vulnerable of fresh attacks.
Res: 0.7608, 0.7635, 0.7644, 0.7691
Sup: 0.7579, 0.7551, 0.7530, 0.7500
