The Aussie fell to 0.6967 in Asia as comments from President Trump, who said that China broke the deal in trade talks with the US and may face high tariffs if no agreement is reached, further soured risk sentiment.
Strong upside rejection on Tuesday and Wednesday’s bearish outside day weigh, as bearish momentum started to rise and daily MA’s in full bearish setup maintain pressure.
Bears eye Monday’s low at 0.6962 (new 2019 low, the lowest since early Jan) and more significant Fibo support at 0.6931 (61.8% of 0.6706/0.7295) violation of which would generate strong bearish signal.
Falling 5SMA (0.6996) caps today’s action and marks initial resistance, with pivotal barriers at 0.7013/15 (daily Tenkan-sen/10SMA) expected to limit upticks an keep bears in play.
Res: 0.6996, 0.7015, 0.7026, 0.7048
Sup: 0.6962, 0.6931, 0.6900, 0.6877
