Break below 10DMA would signal end of recovery phase and reversal
The Australian dollar fell in European session on Friday, maintaining negative near-term tone, following repeated recovery rejection at 0.6750 Fibo barrier (23.6% of 0.7032/0.6662, reinforced by falling 20DMA) and Thursday’s close in read after three-day rally.
Recovery phase might be over as larger picture is bearish and renewed risk-off mode weighs on Aussie.
Dips were so far held by 10DMA (0.6715) with clear break below this indicator boost initial negative signal and shift near-term focus lower.
The pair may extend directionless action on repeated close above 10DMA that would keep the pair within 0.6715/49 range, while break above 0.6750 would generate initial bullish signal.
Res: 0.6731; 0.6750; 0.6775; 0.6803
Sup: 0.6715; 0.6706; 0.6695; 0.6682