The Aussie dollar holds positive tone and extends recovery above pivotal barrier at 0.7146 (Fibo 38.2% of 0.7314/0.7041) on Wednesday.
Positive tone in Asian stock markets supported Aussie’s recovery which eyes next strong barrier at 0.7165 (falling 20SMA which created bear-cross with 30SMA), break of which would provide fresh bullish signal and expose 0.7177 (Fibo 50% / daily Kijun-sen).
Strengthening momentum studies are supportive, but overbought conditions warn of recovery stall.
Bulls need firm break above 0.7164/77 to signal further recovery, otherwise, the downside would remain vulnerable as overall picture is bearish.
North-turning 10SMA marks pivotal support at 0.7101, loss of which would re-expose base at 0.7040 zone.
Res: 0.7164, 0.7177, 0.7210, 0.7229
Sup: 0.7130, 0.7101, 0.7085, 0.7042
