The Australian dollar was slightly bid in Asia on Tuesday, but quick fall in Europe pressures Monday’s low at 0.6913 (also broken Fibo 23.6% of 0.7068/0.6864).
Recovery from 0.6864 base (lows of 17/23 May) showed initial signs of stall on Monday’s upside rejection on approach to key barriers at 0.6942/45 (double-Fibo barrier / falling 20SMA), but slight bullish bias is expected to stay alive above pivotal supports at 0.6913 and 0.6900 (10SMA / hourly cloud base).
North-heading momentum, formation of 5/10SMA’s and thick hourly cloud underpin the action, but prevailing trend is bearish and sentiment soured on expectations of interest rate cut in RBA’s next week policy meeting.
Sustained break above 0.6942/45 pivots is needed to signal further recovery, neutral near-term mode can be expected while the price action holds between 0.6900/45 range, while break below 0.6900 handle will be bearish.
Res: 0.6930, 0.6945, 0.6966, 0.6990
Sup: 0.6913, 0.6901, 0.6864, 0.6845
