The Australian dollar falls further in European session on Wednesday after Monday’s strong fall consolidated within narrow range on Tuesday.
Fresh weakness probes again below 30SMA (0.6948), with firm break to threaten test of key supports at 0.6931/24 (20SMA (Fibo 61.8% of 0.6864/0.7022).
Monday’s long bearish candle continues to weigh, along with strong US/China rhetoric, offsetting positive impact from weaker US dollar.
Weakening daily momentum adds to negative tone, which needs close below 20SMA for confirmation.
Broken 10SMA caps today’s action and marks pivotal barrier at 0.6962, break of which would ease downside pressure.
Res: 0.6962, 0.6985, 0.7000, 0.7022
Sup: 0.6943, 0.6931, 0.6924, 0.6900