The Australian dollar is higher on Wednesday, bouncing from dangerous zone at 0.7625 (27 Oct low), which was retested on Tuesday’s strong fall.
Weaker US dollar offered relief for the Aussie, with larger downtrend from 0.8124 high taking a breather above strong support at 0.7630 zone (Fibo 61.8% of 0.7328/0.8124 rally, reinforced by weekly 55SMA) before bears resume.
Today’s action was so far capped by falling 10SMA (0.7672), which should ideally limit upside attempts.
However, extended upticks are expected to stay under 200SMA (0.7697) and keep bearish structure intact.
Eventual break and close below 0.7630 zone would generate bearish signal for extension towards targets at 0.7572/35.
Res: 0.7672, 0.7697, 0.7729, 0.7747
Sup: 0.7625, 0.7572, 0.7535, 0.7500
