AUDUSD – broader bears may take a breather ahead of key 0.7850/40 support zone
The Australian dollar bounced from new 2018 low at 0.7758 posted on Friday, signaling hesitation ahead of strong supports at 0.7750/40 (200SMA / Fibo 61.8% of 0.7500/0.8135 / rising daily cloud top).
The pair is moving in steep two-week descend from 0.8135 peak, which could take a breather on oversold studies and week-end profit-taking.
Initial barrier at 0.7800 has been tested, with 0.7850 zone coming next and extended upticks to be capped under 0.7900 zone (Fibo 38.2% of 0.8135/0.7758 fall / 06/07 Feb double upside rejection) to keep overall bears intact.
Res: 0.7800; 0.7847; 0.7910; 0.7937
Sup: 0.7758; 0.7750; 0.7740; 0.7687