The Australian dollar edged lower after facing headwinds at psychological 0.70 barrier, with RBA’s decision to keep rates unchanged, contributing to fresh weakening.
Fundamentals remain mixed as hopes of economic recovery continue to boost risk mode, while rising number of new virus cases sours the sentiment.
Technical studies show fading bullish momentum on daily chart and stochastic reversing from overbought territory as negative signals which conflict with MA’s in full bullish setup.
Converged sideways-moving 10/20 DMA’s (0.6906/00) mark pivotal support which should contain dips and keep bias with bulls.
Break of these barriers would weaken near-term structure and risk probe into the lower part of consolidation (0.7064/0.6776) of larger Mar/Jun uptrend (0.5509/0.7064).
Key supports lay at 0.6807/0.6776 and break here would generate initial signal of pullback.
Neutral near-term mode could be expected while the price remains within 0.6800/0.7000 range, while close above 0.70 barrier would improve tone and expose key barrier at 0.7064 (10 June high).
Res: 0.6983, 0.7000, 0.7064, 0.7082
Sup: 0.6927, 0.6900, 0.6880, 0.6832
