The Aussie remains under strong pressure and extended weakness on Thursday and hit fresh multi-month low at 0.7392 (the lowest since 11 Jan), pressured by trade balance data from Australia and Services PMI from China.
Australian trade balance narrowed in March, compared to the forecast, while Chinese Caixin Services PMI also missed the forecast.
The pair fell sharply on Wednesday, losing around 1.5% for the day on the biggest one-day fall since 09 November.
Loss of previous low and key support at 0.7438 has increased strong downside pressure from firmly bearish technical studies, as the pair is now pressuring next important support at 0.7386 (Fibo 61.8% of 0.7163/0.7747 ascend.
Wednesday’s long bearish candle weighs heavily on the market, with the pair looking for break below 0.7386 for potential attack at another key support at 0.7329 (weekly cloud base).
Broken former low at 0.7438 now offers immediate resistance, with falling daily Tenkan-sen (currently at 0.7487) expected to cap upside attempts.
Res: 0.7438, 0.7487, 0.7535, 0.7554
Sup: 0.7386, 0.7329, 0.7298, 0.7271
