The Aussie moved higher on Friday, supported by higher China’s stocks, in attempts to stabilize after losses in past two days.
Dips found support at 0.71 zone, however, the downside remains vulnerable as repeated failures to close above pivotal 0.7145 barrier (Fibo 38.2% of 0.7314/0.7041) continue to weigh, along with falling 20SMA (currently at 0.7143) which capped upside attempts.
Weak momentum and MA’s in bearish configuration on daily chart, add to downside risk.
Close below 0.71 handle would increase risk of retesting 0.7040 base and possible extension towards psychological 0.70 support.
Alternative scenario requires close above 20SMA / Fibo barrier to signal continuation of recovery from 0.7040 base.
Res: 0.7120, 0.7145, 0.7159, 0.7177
Sup: 0.7088, 0.7040, 0.7000, 0.6977
