Close below key Fibo support at 0.7325 to signal further weakness
The Aussie dollar is consolidating above new low at 0.7322 (the lowest since Jan 2017) posted on Wednesday.
Three-day descend is taking a breather but negative sentiment and bearish techs keep the downside in focus as Wednesday’s fall also cracked important support at 0.7325 (Fibo 61.8% of larger 0.6825/0.8135 rally).
Close below 0.7328 (09 May 2017 low) and 0.7325 Fibo support would generate bearish signal for extension of broader downtrend from 0.8135 (2018 high) towards 0.7160 (late Dec 2016 higher base) and 0.7135 (Fibo 76.4% of 0.6825/0.8135 rally).
Falling 10 SMA marks solid resistance at 0.7390 (reinforced by the base of thick 4-hr cloud), where extended upticks should be capped to keep intact pivotal lower base at 0.7340 zone.
Res: 0.7362; 0.7390; 0.7407; 0.7423
Sup: 0.7322; 0.7283; 0.7268; 0.7200