The Aussie dollar strengthened in European session on Wednesday after hitting new two-week low at 0.7475 in Asia on downbeat Australian building approvals which fell 5% in Apr, undershooting forecast for 2.9% fall.
Fresh recovery was supported by weaker greenback and probes above initial pivots at 0.7525 (Fibo 38.2% of 0.7605/0.7475 / 4-hr cloud base), pressuring key barriers at 0.7540 zone (converged 10/30SMA’s).
Recovery attempts in past over one week were capped by falling 30SMA with repeated failure to signal an end of recovery phase and risk fresh weakness.
Falling momentum is probing into negative territory and maintains bearish setup along with daily MA’s in bearish configuration.
Conversely, close above 30SMA (the first since 18 Apr) would generate bullish signal for stronger recovery.
Res: 0.7540, 0.7565, 0.7590, 0.7605
Sup: 0.7506, 0.7475, 0.7447, 0.7412
