AUDUSD – falling daily cloud continues to weigh
The Aussie dollar ticked higher on Wednesday but remains within extended congestion, capped by 200SMA (0.7692).
Falling daily cloud continues to weigh (cloud base lies at 0.7690) and risk of reversal will remain in play while recovery action is limited by the cloud.
Pivotal supports lay at 0.7637 (congestion floor) and 0.7620 (Fibo 38.2% of 0.7500/0.7694) and break lower would generate stronger bearish signal, while penetration of daily cloud will be bullish signal for extension towards next pivot at 0.7738 (Fibo 38.2% of 0.8124/0.7500 descend), break of which would signal bullish continuation of recovery leg from 0.7500.
Res: 0.7692; 0.7729; 0.7738; 0.7787
Sup: 0.7651; 0.7637; 0.7620; 0.7597