The Australian dollar stays high as traders remain hopeful of a dovish Fed pivot. A tentative break above last August’s high of 0.7130 further fueled the bulls’ enthusiasm and could lay the foundation for an extended reversal to 0.7270. In the short-term, the RSI’s bearish divergence indicates a slowdown in the momentum and could be significant as the price flirts with the supply zone. 0.7060 is the first support and 0.6960 at the base of a bullish breakout and on the 20-day moving average is a key level in case of a deeper correction.
