Aussie consolidates around 0.70 handle after 1.24% fall

The Aussie dollar consolidates around 0.70 handle, following attempt through this important support which resulted in posting the lowest since 3 Jan at 0.6992.
Bears hold grip after Wednesday’s 1.24% fall (the biggest one day losses since 6 Feb), as Australian dollar was hit by signals that lower inflation opens the door for the RBA to cut interest rates in 2019.
Broader strength of the US dollar adds to negative near-term outlook.
Bears may show hesitation at key 0.70 support as daily studies are oversold and consolidative / corrective action would preceded final push lower.
Upticks are expected to stall at 0.7050/70 zone (former low of 2/3 Apr / broken Fibo 38.2% of 0.6706/0.7295) before bears re-take control.
Firm break below 0.70 pivot (psychological / 8 Mar low / 50% of 0.6706/0.7295) would generate strong bearish signal for extension towards 0.6931 (Fibo 61.8%).

Res: 0.7022; 0.7054; 0.7070; 0.7081
Sup: 0.7000; 0.6992; 0.6931; 0.6900