AUDUSD – bears look for extension of last week’s strong fall
The Australian dollar stays in red at the beginning of the week and extends below key support at 0.7712 (01 Mar former low).
Extension of last Thu/Fri sharp fall eyes Fibo 123.6% projection at 0.7664 and could stretch to test weekly cloud base at 0.7641, break of which would generate next strong bearish signal.
Last week’s bearish engulfing was negative signal, with firmly bearish daily techs favoring further weakness, as concerns about trade war keeps the Aussie pressured.
Bears may take a breather in coming sessions as slow stochastic is oversold on daily chart, but so far lacking signal.
Broken former low at 0.7712 now acts as initial resistance with stronger upticks to be ideally capped by broken 100SMA (0.7773).
Res: 0.7712; 0.7773; 0.7800; 0.7817
Sup: 0.7664; 0.7641; 0.7600; 0.7586