AUDUSD – recovery needs firm break above 10SMA to delay renewed attack at weekly cloud base pivot
The pair extends recovery from Thursday’s fresh multi-month low at 0.7642, where weekly cloud base provided footstep for broader downtrend.
Recovery extension cracked initial barrier at 0.7701 (10SMA), break of which would generate bullish signal for further upside.
Reversal of slow stochastic from oversold territory on daily chart supports scenario, however, overall bearish structure suggests limited upside (extended upticks to be capped under falling 20SMA at 0.7758) before bears resume.
The pair is on track for weekly close in long-legged Doji which signal strong indecision and could keep the pair in extended consolidation while holding within thick weekly cloud.
Res: 0.7679; 0.7702; 0.7714; 0.7757
Sup: 0.7641; 0.7600; 0.7586; 0.7556