The AUDUSD fell to new two-week low Thursday, extending weakness into fifth straight day, following comments from RBA Governor Lowe, who said that it was reasonable to expect an extended period of low interest rates.
Fresh weakness cracked bull-channel support line (0.6964) after Wednesday’s break and close below 0.6986 pivot (Fibo 38.2% of 0.6831/0.7082) generated strong bearish signal.
Break below the trendline and 0.6956 (50% retracement / 55DMA) would spark further weakness and unmask supports at 0.6927/10 (Fibo 61.8% of 0.6831/0.7082 / 10 July trough).
Meanwhile, bears may take a breather as stochastic is oversold and momentum reversed higher, with upticks to offer better selling opportunities while holding below 20DMA (0.7000).
Only lift and break above broken 10DMA (0.7017) would sideline bears.
ECB meeting and US durable goods data today and US GDP on Friday are the key events which are expected to provide fresh signals.
Res: 0.6986, 0.7000, 0.7017, 0.7035
Sup: 0.6964, 0.6956, 0.6927, 0.6910
