AUDUSD is holding within a narrow range around 0.6600 handle on Wednesday, after the pullback in past three days started to run out of steam.
Tuesday’s long-legged Doji signaled indecision and hinting that corrective phase might be close to the end, as picture on daily chart remains bullish (strong positive momentum / MA’s in bullish setup forming multiple bull-crosses).
Near-term action stayed above descending 55DMA for the fifth straight day, adding to initial positive signals, however more evidence will be needed to signal the bottom of corrective pullback.
Repeated close above the base of falling daily cloud will be a minimum requirement, with close above Tuesday’s spike high (0.6638) to strengthen near-term structure and shift focus to the upside, for renewed attempt at key near-term barriers at 0.6667/70 (Mar 8 recovery peak / daily cloud top).
Res: 0.6638; 0.6670; 0.6707; 0.6728.
Sup: 0.6584; 0.6572; 0.6555; 0.6543.
