The Aussie dollar ticks higher from new over five-week low at 0.7054 and daily cloud top (0.7050) but maintains bearish bias on weak daily techs and negative signal on Monday’s close below pivotal Fibo support at 0.7070 (38.2% of 0.6706/0.7295).
However, bears face headwinds from thick daily cloud and oversold daily stochastic and may hold in extended consolidation.
Falling 5SMA caps today’s action, but stronger recovery and close above Monday’s high (0.7107) would generate initial positive signal on formation of bullish engulfing that would keep bears on hold for stronger correction.
Cluster of daily MA’s at 0.7151/67 zone marks strong barrier which should cap stronger upticks and keep bears in play.
Only sustained break here would neutralize bears and shift near-term focus higher.
Res: 0.7087, 0.7107, 0.7151, 0.7167
Sup: 0.7050, 0.7000, 0.6931, 0.6900