The Australian dollar pared overnight gains, driven by risk mode and RBA minutes signaling possibly shallower economic downturn than previously estimated, as sentiment was soured by news from North Korea and India.
Today’s action stalled at weekly cloud top (0.6969) and subsequent dip found support found footstep at 0.6900 zone, keeping the near-term bias with bulls after Monday’s rally completed reversal pattern on daily chart and signaled that shallow correction is over.
Studies are still bullish and favor further recovery, which needs close above 10DMA (0.6937) for next positive signal. Psychological 0.70 barrier and 10 June high (0.7064) remain in focus, but extended consolidation may precede. Near-term outlook is expected to remain positive while rising 20DMA (0.6793) underpins.
Res: 0.6936, 0.7000, 0.7032, 0.7064
Sup: 0.6896, 0.6876, 0.6837, 0.6793
