The Aussie dollar remains bid on Tuesday and holds within daily cloud, with cloud base (0.7591) marking solid support which contained overnight dip after release of news from US/NK summit.
Recovery leg from last Friday’s spike low at 0.7560, retraced so far 50% of 0.7676/0.7560 pullback and keep near-term focus at the upside.
Bulls are regaining momentum and generate bullish signal on break above 55SMA (0.7606), as rising 10SMA is attempting to for bull-cross and further support the advance.
We look for bullish signal on close above 55SMA which would open way for extension towards main bear-trendline (0.7658) which repeatedly capped recovery rally from 0.7412 low last week.
Bearish scenario requires close below cloud to shift focus lower.
Res: 0.7621, 0.7632, 0.7658, 0.7676
Sup: 0.7606, 0.7574, 0.7560, 0.7551
