The Australian dollar trades at the upper side of the range that extends into sixth straight day on Tuesday, boosted by advance in China’s stocks.
Optimistic tones that US and China could reach a deal on next month’s G20 meeting in Argentina were overshadowed by fears that the US would impose tariffs on all Chinese imports if talks fail.
Mixed signals from fundamentals are accompanied by conflicting daily indicators and lacking firmer direction signal.
Overall bears have weakened after strong rejection on probe through 0.7040 base, with bullish momentum building on daily chart and keeping the downside protected for now. Fresh bulls probe again through pivots at 0.7087/91 (converged 10/20SMA’s), following multiple rejections, with sustained break higher to generate bullish signal for stronger recovery.
Conversely, extended sideways mode could be expected on repeated failure at 10/20SMA barriers, with risk to remain shifted lower.
Res: 0.7108, 0.7126, 0.7142, 0.7184
Sup: 0.7076, 0.7050, 0.7040, 0.7020
