The Australian dollar edges lower from new highest in nearly two weeks in early Tuesday, consolidating strong rally in past two days.
Overbought conditions on daily chart prompted a partial profit taking, though near-term structure remains bullish and so far unharmed from downbeat data which showed Australian consumer confidence falling to multi-year lows, while business activity is showing signs of slowdown due to worsening economic conditions.
Daily technical studies maintain strong bullish momentum and moving averages formed a multiple bull-crosses, underpinning the advance.
Bulls eye key barriers at 0.6522/39 (Oct 27 top / Fibo 38.2% of 0.7136/0.8170 descend) break of which is needed to generate strong bullish signals (on completion of failure swing and violation of pivotal Fibo resistance) for further recovery and test of the base of falling daily cloud (0.6596).
Broken daily Tenkan-sen (0.6397) reverted to strong support which should contain extended dips and keep near-term bulls in play.
Res: 0.6490; 0.6522; 0.6539; 0.6596.
Sup: 0.6444; 0.6397; 0.6387; 0.6358.
