The pair holds in red in Europe on Monday, as mixed Australian data partially offset positive signals from renewed optimism on possible US/China trade deal.
Fresh weakness pressures again key Fibo support at 0.7070 (38.2% of 0.6706/0.7295) which contained last Friday’s extension of three-day fall, after the support limited attacks in Feb.
Daily techs remain negative, as plethora of south-turning and converging daily MA’s weigh and momentum is breaking into negative territory.
Eventual break of 0.7070 pivot and nearby thin daily cloud (0.7059/50) would open way for fresh acceleration towards psychological 0.70 support, possibly to 0.6931 (Fibo 61.8% of 0.6706/0.7295) in extension.
Traders focus tomorrow’s RBA policy meeting for fresh signals, with the central bank widely expected to stay unchanged and dovish rhetoric on slowing growth that would add to negative signals on RBA’s plans for tightening policy in 2019.
Res: 0.7114, 0.7127, 0.7141, 0.7163
Sup: 0.7070, 0.7054, 0.7000, 0.6931
