Fresh recovery attempts need break above 20DMA to generate bullish signal
The Australian dollar regained traction on Thursday and ticked above 0.61 handle (session high at 0.6119) after two-day pullback from 0.6212 recovery peak stalled at initial Fibo support at 0.6046 (23.6% of 0.5509/0.6212 upleg).
Positive tone of US equities and dollar bulls pausing, inflate risk sensitive Aussie, with recovery being underpinned by rising momentum and north-heading after reversal 10 DMA (currently at 0.6021).
Positive signals could be partially offset most of daily MA’s being in bearish setup and south-heading stochastic.
Fresh recovery attempts pressure falling 20 DMA (0.6126) but need close above the indicator to generate initial bullish signal for extension towards pivotal barriers at 0.6212 (31 Mar recovery high) and 0.6235 (Fibo 61.8% of 0.6684/0.5509 bear-leg).
Caution on failure to clear 20DMA that would keep the downside vulnerable, with loss of 10DMA and psychological 0.60 level to weaken near-term structure and risk deeper pullback.
Res: 0.6126; 0.6185; 0.6212; 0.6235
Sup: 0.6062; 0.6046; 0.6021; 0.6000