The Australian dollar is extending its recovery from multi-month lows on Tuesday, breaking the pivotal barriers at 0.6708 (10DMA), driven by fresh risk appetite.
The daily RSI and Momentum are heading north after forming a bullish divergence which could help the recovery.
An extension and a close above the 10DMA would generate a firmer bullish signal and an open barrier at 0.6749 (Fibo 23.6% from 0.7032/0.6662), with key levels at 0.6775/0.6803 (5th Feb high, reinforced by the 20DMA/Fibo 38.2% drop from 0.7032). / 0.6662)).
Being careful not to break the 10DMA would keep the downside at risk.