The Australian dollar continues to ride on the wave of fresh optimism which boosted risk sentiment and hits new 1 ½ month high vs its US counterpart on Tuesday.
Fresh fall in oil prices added to bullish stance, which was confirmed by Tuesday’s close above former high at 0.6444 (14 Apr) and Fibo 61.8% of 0.7032/0.5509 fall (0.6450).
Bulls eye next barrier at 0.6569 (100DMA) break of which would open 200DMA (0.6690).
Weakening daily momentum, which also formed bearish divergence and strongly overbought stochastic require caution as bulls may take a breather and consolidate before resuming.
Former high at 0.6444 now offers immediate support, with dip-buying mode favored above rising 10DMA (0.6366).
Res: 0.6500, 0.6569, 0.6612, 0.6690
Sup: 0.6434, 0.6397, 0.6366, 0.6341
