The Aussie dollar fell again on Thursday after the third consecutive upside rejection, as recovery rally from 0.7328 (09 May low) shows signs of fatigue, following repeated failures to sustain break above 0.7500 barrier, where weekly cloud top, reinforced by weekly Kijun-sen capped rallies. Additional pressure is building on reversal of slow stochastic from overbought zone border. Wednesday’s low at 0.7742 (also Fibo 38.2% of 0.7328/0.7517 upleg) marks lower trigger, break of which is expected to spark stronger correction which may extend towards next Fibo supports at 0.7423 and 0.7400 (50% and 61.8% retracement respectively) Break below 0.7400, which is also the base of 4-hr cloud is needed to confirm reversal and lower top at 0.7517. Expect prolonged consolidation phase while the pair holds between 0.7442 and 0.7517 congestion.
Res: 0.7500; 0.7517; 0.7530; 0.7555
Sup: 0.7460; 0.7442; 0.7423; 0.7400
