The Australian dollar probes through 30SMA support (0.6949) on Tuesday, in extension of 0.71% fall previous day and pressure 0.6943 (50% retracement of 0.6864/0.7022).
Monday’s bearish outside day and close below pivotal Fibo support at 0.6962 (38.2% of 0.6764/0.7022) was negative signal, helped by weaker momentum and falling stochastic on daily chart.
Mixed Australian data overnight had no impact on the price, driven lower by stronger dollar and weaker techs.
Sustained break below 0.6949/43 supports would open way for test of pivotal points at 0.6930 (20SMA) and 0.6924 (Fibo 61.8%) break of which is needed to confirm reversal and lower top at 0.7022 (7 June high).
Fresh bears may stay on hold if the price returns and closes above 10SMA (0.6958) but there will be long way towards upper pivot at 0.7022 (falling 55SMA) as Monday’s long bearish daily candle weighs.
Res: 0.6966, 0.6985, 0.7000, 0.7022
Sup: 0.6943, 0.6930, 0.6924, 0.6900
