Bears to resume after consolidation as global risk-off mode weighs heavily
The Aussie is holding near new marginally lower low (0.6583), posted after Monday’s gap-lower opening, hammered by increased risk aversion on fears after coronavirus spread outside China.
Friday’s recovery attempt on strong downside rejection and first positive daily close after six straight days in red, was so far short-lived and near-term focus remains at the downside.
The US dollar is one of main winners of current risk-off mode and set for further rise that keeps Aussie under strong pressure.
Bears see no significant support until 0.6261 (Fibo 76.4% of larger 0.4773/1.1079 ascend) and attack at this level could be likely scenario in coming sessions.
Bearish daily/weekly techs support the notion, however, over sold conditions warn that bears may pause for consolidation before resuming.
Friday’s high at 0.6639 (reinforced by falling 5DMA) marks initial resistance, followed by 0.6662/79 (former low of 7 Feb / falling 10 DMA) which is expected to cap stronger upticks.
Res: 0.6619; 0.6639; 0.6662; 0.6679
Sup: 0.6583; 0.6532; 0.6500; 0.6447