The Aussie dollar extends advance on Tuesday, driven by weaker US dollar on fresh risk sentiment also supported by stronger that expected Australian data, released overnight. Monday’s eventual close above 55SMA (0.7117) which limited the action in past five days was bullish signal that added to improved near-term outlook. Fresh bulls cracked pivots at 0.7145/49 (100SMA/50% of 0.7295/0.7003) and pressures daily cloud top (0.7156), with daily close above these levels needed to generate further bullish signals for extension of recovery from 0.7000 zone. Caution on weaker momentum and overbought slow stochastic on daily chart, which may slow bulls, but repeated close above 55SMA would keep bullish bias and focus shifted higher.
Res: 0.7149, 0.7156, 0.7168, 0.7183
Sup: 0.7131, 0.7119, 0.7101, 0.7091
