The Aussie dollar holds in red on Friday and probed below 0.7700 handle, in extension of previous day’s sharp fall.
Repeated rejection at 200SMA, with near-term action being weighed by thickening daily cloud (base of cloud lies at 0.7835), sparked pullback which was helped by stronger greenback.
Negative scenario was supported y formation of double-top on daily chart and the apir registered the biggest one-day losses in past three weeks on Thursday.
Friday’s extension lower broke below 20SMA support (0.7716) and cracked another pivotal support at 0.7707 (Fibo 61.8% of 0.7642/0.7812 upleg).
Close below here is needed to signal an end of recovery phase from 0.7642 and open way for retest of strong support at 0.7640 zone (weekly higher base) reinforced by longer-term bull-trendline, drawn off 0.7158 (02 Jan 2017 low).
Broken 30SMA (0.7733) caps today’s action and guards broken 10SMA (0.7748) which is expected to limit stronger upticks and keep near-term bears in play.
Res: 0.7733, 0.7748, 0.7780, 0.7794
Sup: 0.7699, 0.7682, 0.7640, 0.7600
