The Australian dollar bounced on Tuesday after posting new, marginally lower multi-month low at 0.7091.
Monday’s hammer candle signaled that bears might be running out of steam, with profit-taking expected to accelerate recovery.
Former low of 05 Sep at 0.7144, marks initial resistance, with falling 10SMA (0.7187) marking the upper trigger, break of which is needed to ease bear-pressure and open way for stronger correction.
However, overall picture remains firmly bearish and sees risk of limited recovery before bears resume, with initial target at 0.7000 being in focus.
Res: 0.7144, 0.7187, 0.7235, 0.7250
Sup: 0.7091, 0.7022, 0.7000, 0.6954
