The Australian dollar bounced on Tuesday as stocks stabilize and signs of easing US / China trade tensions offered fresh support.
Three-day fall from 0.7302 high hit two-week low at 0.7164, where bears were contained by 55SMA and subsequent bounce returned back to thick daily cloud, offsetting negative signal on Monday’s close below cloud base (0.7177).
Recovery attempts were supported by bullish momentum, but failed to sustain break above 10SMA pivot (0.7204), keeping the downside vulnerable.
Close above 10SMA would generate bullish signal for stronger recovery of three-day 0.7302/0.7164 fall, with emerge above cloud top (0.7247) needed to confirm scenario, supported by bullishly aligned daily studies.
Conversely, repeated close below daily cloud base would generate fresh bearish signal for extension towards 0.7128 support (Fibo 61.8% of 0.7020/0.7302 ascend /30SMA).
Res: 0.7204, 0.7218, 0.7237, 0.7257
Sup: 0.7177, 0.7161, 0.7146, 0.7128
