Aussie accelerates through key Fibo support on strong risk aversion
The Australian dollar was sharply lower on Wednesday, registering losses of 0.85% for the day so far and on track for the biggest one-day fall since 1 July.
US/China trade conflict, Brexit uncertainty and Trump impeachment talk were key factors that sparked risk-off sentiment and caused Aussie’s strong bearish acceleration.
Adding to negative signals was today final break below pivotal Fibo support at 0.6766 (61.8% of 0.6687/0.6894) which contained action in past three days.
Break and close below 0.6766 will be strong bearish signal for extension of bear-leg from 0.6894 (12 Sep high) towards key supports at 0.6687/77 (3 Sep / 7 Aug lows), as extended bears pressure support at 0.6736 (Fibo 76.4%).
Rising negative momentum and daily MA’s in bearish configuration support the notion, but oversold stochastic warn that bears may take a breather in coming sessions.
Broken Fibo 61.8% support now marks solid resistance at 0.6766, guarding 30DMA (0.6792).
Tops of last Fri/Tue, reinforced by 20DMA (0.6706/08) mark upper pivot and only break here would neutralize bears.
Res: 0.6759; 0.6766; 0.6792; 0.6808
Sup: 0.6736; 0.6700; 0.6687; 0.6677