AUDUSD extends recovery from 0.7440 low, daily Tenkan-sen & Kijun-sen lines are expected to cap
|The pair continues to trend higher on recovery rally from 0.7440, underpinned by rising daily cloud base. Today’s fresh strength probes again above cracked 0.7551 barrier (Fibo 38.2% of 0.7730/0.7440 downleg), following yesterday’s spike to 0.7571 and subsequent pullback that closed well below 0.7551 barrier.
Daily close above here is needed to confirm recovery for attack at another strong resistance points at 0.7585/94 (converging daily Tenkan-sen/Kijun-sen lines), which guard the upper breakpoints at 0.7619 (Fibo 61.8% of 0.7730/0.7440) and top of thickening daily cloud at 0.7629.
Ideal scenario sees recovery capped under daily Tenkan-sen line and fresh leg lower commencing from here. Overall bearish technicals support the notion.
Res: 0.7571; 0.7585; 0.7594; 0.7619
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