Aussie extends steep fall on strong risk-off mode
The Australian dollar extends steep fall into fourth straight day, driven by strong risk-off mode.
Weaker than expected Australian Q3 GDP, released on Wednesday; dovish shift in RBA expectations and narrowing Oct trade surplus, add to negative sentiment, with solid Australian Oct retail sales, unable to improve the tone.
Bears extend further today, following 1% fall on Wednesday and look for test of strong supports at 0.7199/95 (27 Nov trough / daily cloud top (0.7195) and 55SMA (0.7191).
Cloud’s twist next week (0.7170) is also magnetic and sustained break below 0.7199/91 pivots would open way for extension towards 0.7163 (Fibo 61.8% of 0.7020/0.7393 / 13 Nov trough).
Rising negative momentum fuels bears, with broken 20SMA (0.7263) marking solid resistance and stronger upticks expected to hold below broken 10SMA (0.7279).
Res: 0.7237; 0.7263; 0.7279; 0.7305
Sup: 0.7199; 0.7191; 0.7163; 0.7130