The Australian dollar edges higher vs its US counterpart on Tuesday, after daily Tenkan-sen (0.6591) provided firm ground for a four-day pullback from Nov 15 peak (0.6797).
Aussie regained traction on renewed risk mode, but fresh advance is facings headwinds from daily cloud top, reinforced by 10DMA (0.6653), also near pivotal Fibo barrier at 0.6665 (38.2% of 0.6797/0.6584) though shallow easing suggests that bulls so far hold grip and keep pivotal barrier under pressure.
Daily techs are bullishly aligned and support the action which needs to clearly break above daily cloud to generate initial signal of reversal, which would require further support on extension above 100DMA/50% retracement (0.6691).
Caution on failure at cloud top which would soften near-term structure, but bias is expected to remain positive as long as the action holds above daily Tenkan-sen.
Res: 0.6653; 0.6665; 0.6691; 0.6730.
Sup: 0.6591; 0.6557; 0.6514; 0.6503.
