Bulls cracked pivotal barriers but without clear break for now
Fresh upside attempts resulted in posting new six-week high at 0.6884 on Wednesday, but probes above pivotal barriers at 0.6870/79 (55DMA / 50% retracement of 0.7082/0.6677) were so far short-lived.
Fresh risk sentiment keeps the Aussie afloat and offsets negative impact from downbeat Australia’s consumer sentiment (Sep -1.7% vs Aug 3.6%).
Rising bullish momentum on daily chart conflicts overbought stochastic, which was presented in Tuesday’s tight Doji candle, signaling indecision.
Repeated failure under 55DMA would increase risk extended consolidation / pullback, while close above 0.6870/79 would generate initial signal of bullish continuation.
US PPI data, due later today, would provide fresh signals.
Res: 0.6870; 0.6879; 0.6906; 0.6927
Sup: 0.6848; 0.6831; 0.6797; 0.6780