Aussie accelerates lower as greenback rallies on surging new virus cases
The Australian dollar drops to four-day low on Thursday after bulls repeatedly failed to clearly break above 0.73 barrier, with fresh strength of the US dollar on growing worries on rise of coronavirus cases and fading optimism about the vaccine, although clouded by uncertainty over new stimulus package that may prompt Fed to further ease policy in December.
Better than expected Australian jobs data failed to boost the currency, adding to increasing downside pressure.
Fresh bears broke initial support at 0.7278 (10DMA) and cracked Fibo 23.6% of 0.6991/0.7340 (0.7257), break of which would risk extension through 0.7221 (13 Nov trough) and possible test of key supports at 0.7209/07 (top of thickening daily cloud / Fibo 38.2%).
Daily studies lose momentum, RSI turned south and bearish divergence on stochastic warned that bulls run out of steam.
Formation of double-top pattern on daily chart adds to negative signals.
Res: 0.7278; 0.7305; 0.7313; 0.7339
Sup: 0.7252; 0.7221; 0.7207; 0.7296