The Australian dollar rallies on Tuesday, supported by fresh weakness of US dollar, after RBA decision to keep interest rates unchanged at record low, as widely expected, showed little impact.
Fresh strength attacks Monday’s high at 0.7393, where the action after gap-higher opening, was rejected.
The Aussie maintained bullish tone after consolidation, as strong risk appetite boosts the currency.
Strong bullish setup of daily studies adds to positive outlook, as bulls approach falling 200SMA (0.7414) and focus another pivotal barrier at 0.7445 (Fibo 38.2% of 0.8135/0.7019 fall), break of which would generate strong bullish signal for extension of recovery phase from 0.7020 (26 Oct low).
Bulls may show hesitation at 200SMA barrier on overbought techs, but dip-buying strategy would remain favored while Monday’s gap stays intact.
Res: 0.7414, 0.7445, 0.7464, 0.7483
Sup: 0.7348, 0.7335, 0.7325, 0.7287
