Recovery shows signs of stall as renewed trade war concerns weigh on Aussie
The Aussie dollar stands at the back foot on Monday and eases from recovery high at 0.7443, posted after strong rally last Friday.
Renewed fears over US – China trade conflict increased pressure on Australian dollar, with recovery action off 0.7345 base, starting to show signs of stall.
Falling 10SMA capped today’s action and additionally weighs (currently at 0.7446), along with bearishly aligned daily techs.
The tone could be soured further if trade war concerns intensify.
Bearish signal could be expected on break and close below 5SMA (0.7395) which would shift near-term focus lower and open key supports at 0.7345 (19 / 21 June lows) and 0.7325 (Fibo 61.8% of 0.6825/0.8135 recovery).
Close above 10SMA is needed to ease pressure, but sustained break above 0.7473 (Fibo 38.2% of 0.7676/0.7345 bear-leg) would provide relief and open way for stronger recovery.
Res: 0.7446; 0.7472; 0.7511; 0.7527
Sup: 0.7413; 0.7395; 0.7370; 0.7345