The Aussie fell below 0.7900 handle in Asia on Friday, after RBA Assistant Governor Debelle said there was no automatic reason for rates to rise following recent hawkishness among global policymakers. Debelle cooled markets after the Australian dollar was inflated by hawkish RBA minutes earlier this week, sending the Aussie into correction. Technicals support such scenario after Thursday’s trading was shaped in Doji candle (signaling strong indecision ahead of psychological 0.8000 barrier) and fresh easing on Friday is forming reversal pattern. Bearish close below 0.7900 is needed to confirm and open way for deeper correction of steep ascend from 0.7572 (07 July trough) to 0.7983 (20 July peak). Strongly overbought daily studies support the notion, as RSI and slow stochastic south and are about to emerge from o/b zone and generate bearish signal. Deeper pullback could extend towards 0.7830 (Fibo 38.2% of 0.7572/0.7988 rally), which is also the ideal length of the current fourth (corrective) wave, of five-wave cycle from 0.7535 (22 June low).
Res: 0.7959, 0.7988, 0.8000, 0.8044
Sup: 0.7890, 0.7874, 0.7830, 0.7800
