Downside risk increases on rate cut expectations / trade conflict
The Australian dollar extends steep fall of this week to new four and a half month low on Friday, weighed by increasing odds for rate cut as early as June and rising fears of escalation of US/China trade conflict.
The pair is on track for the biggest weekly fall since early Feb that adds to negative sentiment after bearish signal was generated on repeated close below strong technical support at 0.6391 (Fibo 61.8% of 0.6706/0.7295).
Daily techs are in full bearish configuration, however, oversold conditions suggest corrective action in coming session.
Res: 0.6897; 0.6915; 0.6931; 0.6955
Sup: 0.6872; 0.6845; 0.6800; 0.6750