The Aussie spiked above strong barrier at 0.7440 on Thursday after Australian unemployment fell to four-month low at 5.7% in April and 37.4K new jobs added that heavily beat forecast for 5.0K rise.
The pair rallied to fresh over two-week high at 0.7464 on solid data, but gains were so far short-lived and capped just under strong barrier provided by daily Kijun-sen line. Subsequent pullback below 0.7440 pivot put pressure on lower trigger at 0.7400 zone, signaling risk of reversal on break lower.
With overall bias being with bears and daily slow stochastic reversing from overbought zone, risk of recovery rally stall increases.
Yesterday’s long-legged Doji signaled indecision, with today’s action being so far in the same shape that would signal that recovery phase from 0.7327 low is running out of steam.
Firm break below 0.7400 pivot (reinforced by daily Tenkan-sen / 10SMA would generate stronger reversal signal.
Meantime, the pair may spend some time in extended consolidation between daily Tenkan-sen and Kijun-sen boundaries, before establishing in fresh direction.
Firm break above daily Kijun-sen pivot will be bullish.
Res: 0.7444; 0.7467; 0.7500; 0.7544
Sup: 0.7406; 0.7395; 0.7376; 0.7364