The Australian dollar eased on Wednesday after repeated failure at 0.7174 barrier (daily Kijun-sen/50% retracement of 0.7295/0.7054).
The downside was for now protected by broken 55SMA (0.7149) but deeper pullback cannot be ruled out as stochastic is reversing from overbought territory and bearish momentum continues to strengthen.
Dips below 55SMA would risk extension towards 10SMA (0.7111) which marks pivotal support and needs to hold to keep bullish near-term bias.
Sustained break above 0.7147 pivot would open way for extension towards 0.7203 (Fibo 61.8%) and 0.7245 (6 Feb high).
Markets focus today’s FOMC minutes and Australian jobs data, due early Thursday for fresh signals, as well as the news about the progress of US/China trade talks
Res: 0.7174, 0.7203, 0.7245, 0.7264
Sup: 0.7149, 0.7137, 0.7111, 0.7071
