The Australian dollar holds in red in early European trading on Thursday, following strong fall in Asia that turned near-term bias to bearish mode.
Stronger Australian jobs data initially boosted the pair to new two-week high at 0.7207 but report that China banned Australian coal imports at port Dalian indefinitely smashed the Aussie dollar.
Quick bearish acceleration in reaction to the news broke below 10SMA (0.7112) and dipped below 0.71 handle, pressuring pivotal support at 0.7070 (Fibo 38.2% of 0.6706/0.7295) and threatening retest of 0.7054 base (11/12 Feb lows).
Fresh weakness returned daily MA’s to bearish setup, with slow stochastic heading south and rising bearish momentum, adding to negative outlook. Close below 10SMA is needed to confirm scenario.
Res: 0.7112, 0.7146, 0.7160, 0.7207
Sup: 0.7070, 0.7054, 0.7000, 0.6931
