Aussie extends weakness as trade optimism fades
The Australian dollar fell to two-week low against its US counterpart on Wednesday, extending weakness into fourth straight day and breaking through important Fibo support at 0.6830 (38.2% of 0.6670/0.6929).
Lack of breakthrough in US/China trade talks cooled down risk mode and increased pressure on Aussie.
Fresh bears found footstep at rising 30DMA (0.6824), with daily momentum turning up after being flat in past few sessions and stochastic being deeply oversold, suggesting that bears may take a breather.
Today’s close is expected to generate direction signal, as close below 0.6830 Fibo level would signal further weakness and expose supports at 0.6810/00 (rising 55DMA / 50% retracement).
Conversely, close above 0.6830 would mark the second consecutive failure here and may put bears on hold for extended consolidation.
Upticks need to hold below 20DMA (0.6860) to keep bearish bias.
Res: 0.6844; 0.6869; 0.6873; 0.6906
Sup: 0.6824; 0.6810; 0.6800; 0.6769