The Australian dollar dips further in Europe on Tuesday after hitting new 11-month high (0.7042) in Asia. The sentiment soured after China warned students going overseas about racist incidents targeting Asians in Australia during pandemic. Fresh weakness emerged after larger uptrend cracked former high at 0.7032 (31 Dec 2019) and increased safe-haven demand that may contribute to bulls’ hesitation at key barrier. Daily stochastic and RSI are about to emerge from overbought zone, suggesting that easing could extend. Larger bulls remain firmly in play and current dip is seen as corrective action before the pair resumes higher as key barriers (0.7000/32) have been dented. Rising 10DMA (0.6837) offers solid support which should ideally contain, but deeper pullback towards key supports at 0.6680 (20DMA) and 0.6660 (200DMA) which formed golden-cross on Monday, cannot be ruled out.
Res: 0.7000, 0.7032, 0.7042, 0.7082
Sup: 0.6898, 0.6837, 0.6774, 0.6680
