Bulls face strong headwinds and see risk of pullback
The Australian dollar eases on Tuesday after double failure at daily cloud top (0.6879) which could be initial signal that bulls are exhausted, as overbought daily stochastic and fading bullish momentum add to negative signals.
On the other side, optimistic tones from US/China trade talks underpin Aussie, while rising expectations for Fed rate cut keep the greenback pressured.
Today’s action is holding within narrow range between 100DMA (0.6855) and daily cloud top (0.6879), with initial signal of correction expected on close below 100DMA that would unmask supports at 0.6800/0.6780 zone (Fibo 38.2% of 0.6670/0.6882 / 10;30;55DMA’s).
Firm break above daily cloud top would generate bullish signal and open way towards next pivotal barrier at 0.6925 (Fibo 61.8% of 0.7082/0.6670 descend).
Res: 0.6879; 0.6900; 0.6925; 0.6985
Sup: 0.6855; 0.6832; 0.6800; 0.6780