The Australian dollar extended recovery on Tuesday and pressuring pivotal barrier at 0.7560 (falling 10SMA/Fibo 38.2% of 0.7653/0.7499 downleg).
The Aussie rose despite weaker than expected Australian data released on Tuesday, showing the business confidence fell in November and hit the lowest since August, while House Price Index was well below expectations in Q3 and at the lowest level since Q1 2016.
Weaker sentiment of US dollar ahead of tomorrow’s FOMC policy meeting was the main driver of antipodean currencies in past two sessions.
Completion of Doji reversal pattern on Monday and Tuesday’s fresh extension higher signal further recovery on break above 0.7560 pivot.
Bullish hourly studies are supportive, however, negative daily techs see risk of limited correction before larger bears resume.
Next pivotal barriers lay at 0.7576 (daily Tenkan-sen) and 0.7600 (daily Kijun-sen) and sustained break here would neutralize existing bearish threats for extended correction towards key near-term barrier at 0.7653 (05 Dec high).
Otherwise, near-term bias is expected to stay with bears on limited recovery scenario and keep key supports at 0.7500 (n/t base) and 0.7478 (trendline support) at risk.
Res: 0.7560, 0.7576, 0.7600, 0.7653
Sup: 0.7518, 0.7500, 0.7478, 0.7440
