Aussie dips below 0.60, weighed by strong demand for the greenback
The Australian dollar fell below 0.60 handle on Friday, extending weakness into fourth day, pressured by broader US dollar gains, with low volumes accelerating Aussie’s negative action.
Break below 10DMA (0.6036) and 0.60 support increases negative signals and exposes next key level at 0.5944 (Fibo 38.2% of 0.5509/0.6212 upleg) close below which would generate reversal signal and increase bearish pressure.
Fresh bears move within massive 4-hr cloud (spanned between 0.5854 and 0.6071), with cloud base marking another pivotal support, reinforced by 50% retracement of 0.5509/0.6212.
Uncertainty over the magnitude of negative impact of pandemic to the global economy adds to strong risk aversion and helps Aussie bears with US NFP data expected to be another negative factor.
Falling 20DMA that capped the action in past five sessions and tracks the downtrend since early January, marks solid barrier (0.6092) and only break here would slow bears.
Res: 0.6046; 0.6075; 0.6092; 0.6119
Sup: 0.5980; 0.5944; 0.5870; 0.5854