The Australian dollar regained traction and rose to session high at 0.5975 on Tuesday, driven by fresh optimism in the market on Fed’s latest measures that boosted risk appetite.
Comments from US Treasury secretary that $2 trillion dollar aid package is close to be passed in the Congress add to positive sentiment along with RBA pumping liquidity, add to positive sentiment. Fresh advance cracked important barriers at 0.5948/58 (falling 10DMA/Fibo 38.2% of 0.6684/0.5509 respectively), close above which would generate reversal signal.
Psychological 0.60 level marks immediate barrier with recovery extension to focus pivots at 0.6097 (50% retracement) and 0.6108 (daily Kijun-sen).
Daily RSI is emerging from oversold territory and momentum is rising after forming double-bottom on daily chart, supporting recovery attempts.
Res: 0.5975, 0.6000, 0.6028, 0.6097
Sup: 0.5922, 0.5865, 0.5811, 0.5786
