The Aussie is in red on Thursday but holding above strong support at 0.7600 zone. Pullback from fresh high at 0.7694 was so far held by daily Tenkan-sen at 0.7600, which was seen as ideal reversal point to keep overall bulls intact.
On the other side, daily RSI that reversed from overbought territory shows more room at the downside, which may signal extended correction.
Next solid support below 0.7600 handle is offered by rising 20SMA (currently at $0.7577) and guarding plethora of strong supports between 0.7510 and 0.7490 (higher base / Fibo 38.2% / 100 SMA / and Golden Cross of 55/200SMA’s that is currently forming).
All these strongly underpin the action and should contain extended pullback from 0.7694 high.
Only firm break here would generate stronger bearish signal for deeper correction of 0.7159/0.7694 rally.
The pair is eyeing RBA’s monetary policy statement, due on Friday, for stronger signals.
Res: 0.7644, 0.7664, 0.7694, 0.7730
Sup: 0.7604, 0.7577, 0.7510, 0.7490
