The Aussie is consolidating in a narrow range on Friday, holding above fresh three-week low at 0.7370, posted after strong two-day fall.
Australian currency accelerated lower strongly on Thursday, pressured by weak Chinese data and generated strong bearish signal on daily close below 0.7400 pivot (Fibo 61.8% of 0.7328/0.7517 upleg).
Two long red daily candles on Wed/Thu weigh on near-term action which shows risk of return to key short-term support at 0.7328 (09 May low / weekly cloud top).
Slow stochastic entered oversold territory on daily chart, suggesting stronger hesitation on approach to 0.7328 target, however, no firmer signal being generated for now.
The pair is also on track for strong weekly bearish close which is expected to maintain bearish pressure.
Broken 0.7400 support now acts as initial barrier, followed by converged daily Kijun-sen / Tenkan-sen lines at 0.7442/43, where extended upticks should be capped.
Res: 0.7400, 0.7421, 0.7443, 0.7475
Sup: 0.7370, 0.7350, 0.7328, 0.7300
