The Australian dollar eases from two-week high (0.7753) in European trading on Wednesday, taking a breather after three-day rally (up 1.83%).
Fresh bulls are expected to position for fresh push higher as recent advance already retraced over 61.8% of 0.7820/0.7563 pullback, as the action remains well supported by rising and thickening daily cloud, however, daily MA’s haven’t fully returned to bullish setup, stochastic is overbought and lack of positive momentum keeps in play risk of stall.
Near-term action is expected to remain biased higher while holding above 0.7690 (converged 5/20DMA’s) and keep focus at 2021 high (0.7820).
On the other side, break of 0.7690 pivot would weaken near-term structure, while extension and close below 10DMA (0.7661) would sideline bulls and risk retest of a higher base at 0.7580/60 zone.
Res: 0.7753, 0.7782, 0.7800, 0.7820
Sup: 0.7719, 0.7690, 0.7661, 0.7605
