- AUD/USD recovers just over 10 pips from session low on hopes for US fiscal stimulus.
- The daily chart still shows signs of uptrend fatigue.
AUD/USD has recovered to 0.7557 from the session low of 0.7545, with investors cheering the growing prospect of more US fiscal stimulus.
Senate Democratic leader Chuck Schumer was out on the wires a few minutes ago, stating that lawmakers are still talking on the coronavirus relief package and more talks are likely tonight (Tuesday, Eastern time). However, Schumer did not comment on how talks were progressing.
Further, Senate Majority Leader Mitch McConnell told reporters early today that the lawmakers have vowed to reach a deal before the year-end.
While stimulus hopes have helped the growth-sensitive AUD recover losses, the AUD/USD pair is yet to invalidate the uptrend fatigue signaled by long wicks attached to the previous three daily trading candles with a move above 0.7578.
As long as that hurdle is intact, the immediate bias will remain neutral and the currency pair vulnerable to a sudden pullback. The immediate support is seen at 0.7507 (Tuesday’s low), followed by the 10-day Simple Moving Average (SMA) at 0.7484.
Daily chart
Trend: Neutral
Technical levels
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