AUDUSD – bears may extend consolidation before firmly breaking through cracked 0.7500 pivot
The Aussie dollar bounced above 0.75 handle and former key support which was broken on Tuesday, signaling that larger bears may take a breather before resuming.
Oversold conditions and slightly stronger momentum studies on daily chart also support scenario.
Extended upticks should be capped by falling 10SMA (0.7583) to keep bearish structure intact, while break higher would signal stronger correction and sideline bears.
Bearish continuation on sustained break below 0.7500 would extend towards key support at 0.7320 (Fibo 61.8% of larger 0.6818/0.8135 rally, also 09 May 2017 trough.
Completion of double-top pattern on weekly chart supports negative scenario.
Res: 0.7529; 0.7550; 0.7583; 0.7631
Sup: 0.7472; 0.7423; 0.7356; 0.7320