AUDUSD – bears focus daily / weekly cloud tops; dovish tone from RBA Gov Lowe increases pressure
The Australian dollar remains in red on Thursday and pressures supports at 0.7800 zone (psychological support / rising 55SMA), in extension of strong fall on Wednesday.
Dovish tone from RBA governor’s speech Lowe on Thursday, kept the Aussie under pressure. Lowe said that the central bank does not see strong case rate hike in the near term, pointing at lowering unemployment and raising inflation in order to create stronger support for raising interest rates.
Lowe also highlighted that the RBA does not need to closely follow other major central banks which have started or being on the way to tighten monetary policies.
The Aussie is trading in steep downtrend from 0.8135 (26 Jan peak) which so far retraced over 50% of 0.7500/0.8135 Dec-Jan rally) and showing scope for extension towards very strong supports at 0.7748/42 (200SMA / Fibo 61.8% of 0.7500/0.8135 / top of rising daily/weekly clouds).
South-heading daily slow stochastic in deep negative territory and freshly formed 10/20 SMA and daily Tenkan-sen / Kijun-sen bear-crosses maintain bearish pressure, however bears may show stronger hesitation ahead of key 0.7748/42 supports, as slow stochastic is deeply oversold on daily chart and moved into sideways mode.
Broken Fibo 38.2% level at 0.7892 and double rejection at 0.7907/10, mark significant barriers which are expected to keep the upside protected.
Res: 0.7817; 0.7843; 0.7892; 0.7910
Sup: 0.7790; 0.7775; 0.7748; 0.7742