The Aussie dollar stands at the back foot on Wednesday, consolidating above new recovery highs at 0.7768 after strong bullish acceleration on Tuesday eventually broke above two-week congestion.
Consolidation was so far shallow and contained by sideways-moving 30SMA (0.7742) as tone softened after initial euphoria on conciliating speech of Chinese president faded.
Tuesday’s long bullish daily candle continues to underpin, along with bullishly aligned MA’s (10/20/30) and north-heading 14-d momentum, keeping the upside in focus.
Bulls should ideally hold above 30SMA to keep structure intact for attacks at key barriers at 0.7780 (100SMA) and 0.7810 (200SMA), as the later also marks Fibo 61.8% of 0.7916/0.7642 bear-leg and close above is needed to confirm reversal and signal base at 0.7640 zone.
Meanwhile, extended dips are expected to find footstep above 20SMA (0.7706) to keep hopes of fresh attempts higher alive, while break lower would weaken near-term structure.
US CPI data and FOMC minutes are in focus for fresh signals.
Res: 0.7768, 0.7780, 0.7810, 0.7858
Sup: 0.7742, 0.7706, 0.7697, 0.7674
