The Aussie dollar edged higher on Wednesday after extension of four-day descend found footstep at 0.7553 (30SMA) and profit-taking on Tuesday’s 0.5% fall pushed the price higher.
Near-term action holds in a downtrend from 0.7676/73 double-top and remains pressured by descending thick daily cloud.
Repeated closes below daily cloud maintain negative near-term tone off 0.7676, as pullback reversed over 38.2% of 0.7412/0.7676 rally so far.
Bearishly aligned daily techs support the notion, with eventual break below 30SMA expected to open next pivotal support at 0.7513 (Fibo 61.8%).
Fed’s rate decision announcement is due later today and may cause increased volatility.
Meanwhile, the pair is expected to hold within narrow range.
Sideways-moving daily Tenkan-sen marks solid resistance at 0.7595, which should keep the upside protected and maintain bearish bias0.7412 low last week.
Bearish scenario requires close below cloud to shift focus lower.
Res: 0.7579, 0.7595, 0.7623, 0.7657
Sup: 0.7555, 0.7544, 0.7513, 0.7474
