The Australian dollar remains in red for the second day and extends weakness to one-week low at 0.7144.
Dovish Fed’s outlook on US economy hurt risk sentiment, sending the Aussie down 0.85% on Wednesday.
The latest news that Australia would reject an offer from China-backed company to buy dairy firm, added to weak near-term outlook.
Failure to clearly break 200WMA (0.7253) after the pair posted new 2020 high (0.7275) and subsequently pulled back and closed below 0.7200 mark on Wednesday, also weighs.
Daily techs started to generate negative signal as stochastic is falling, 10DMA turned south and on track to form bear-cross with 20DMA, while momentum is flat on the centerline.
Fresh weakness eyes supports at 0.7119/08 (30DMA/12 Aug trough), break of which would expose pivotal support at 0.7085 (Fibo 38.2% of 0.6776/0.7275).
Res: 0.7193, 0.7243, 0.7253, 0.7275
Sup: 0.7144, 0.7119, 0.7108, 0.7085
