AUDUSD extends weakness after taking out key supports
The pair continues to trend lower and extends weakness from 0.7893 (26 Feb lower top) into third straight day.
Wednesday’s close below key supports provided by 200/100SMA’s and daily cloud base was strong bearish signal which was boosted by today’s extension through 0.7743 (Fibo 61.8% of 0.7500/0.8135 ascend), after weak Australian data overnight further inflated bears.
Round-figure support at 0.7700 is now under pressure, with the pair capable of travelling to 0.7650 (Fibo 76.4% of 0.7500/0.8135).
Daily techs in firm bearish setup support, with slow stochastic continuing to head south in deep oversold territory and so far lacking any signal of recovery.
Senate testimony of Fed Chairman Powell due later today could be another risk for the Aussie, as previous testimony was quite hawkish and boosted the greenback.
Broken former key supports at 0.7780/0 zone (100/200SMA’s / daily cloud base) now act as strong resistances which should keep the upside protected.
Res: 0.7743; 0.7780; 0.7790; 0.7825
Sup: 0.7700; 0.7650; 0.7617;0.7583