The Aussie dollar holds in red on Friday following previous day’s strong fall when the Australian currency was down 1.3% against its US counterpart.
Weak Australian jobs data and China’s data did not make stronger impact on Aussie, but it couldn’t survive ECB shock.
Thursday’s fall marked the biggest one-day loss since 02 Feb, with scope seen for further weakness.
Loss of psychological 0.75 handle opened way for test of key support at 0.7412 (2018 low, posted on 09 May), loss of which would signal continuation of downtrend from 2018 high at 0.8135 and expose next significant support at 0.7325 (Fibo 61.8% of 0.6825/0.8135 2016/2018 rally).
Daily techs turned into full bearish setup after Thursday’s rally and support further weakness, but hesitation on approach to key 0.7412 support could be anticipated. Upticks on profit-taking and oversold studies would be positioning for fresh attempts lower and should be capped below daily cloud base (0.7551).
The pair is also on track for strong bearish weekly close which adds on negative outlook, with weekly close below 0.7412 pivot to generate strong bearish signal.
Res: 0.7480, 0.7513, 0.7551, 0.7571
Sup: 0.7450, 0.7412, 0.7349, 0.7325
