The Australian dollar slipped in early Friday’s trading (down 0.65% for the session) pressured by worries about a slowdown in Australia’s coronavirus vaccine rollout, following the imposition of restrictions on the use of the AstraZeneca vaccine.
The sentiment on Australia’s strong economic recovery was soured as a slowdown in vaccine rollout would delay recovery.
Technical studies on the 4-hr chart turned bearish and daily techs weakened as fresh bearish acceleration emerged after upside attempts stalled on approach to bear-trendline from 0.8007 (2021 high posted on Feb 25).
Near-term focus shifts towards the lower boundary of two-week range (0.7531/0.7676), but the action is expected to remain in sideways mode as long as it holds within the range.
Head and Shoulders pattern on daily chart weighs along with rising bearish momentum on weekly chart and threatening of a deeper pullback which needs initial signal on a weekly close below 0.7619 (Fibo 38.2% of 0.6991/0.8007 upleg) after double failure in past two weeks and confirmation on break of the range floor.
At the upside, 10 DMA (0.7623) marks immediate resistance ahead of more significant 20DMA (0.7659) and trendline resistance (0.7673).
Res: 0.7623, 0.7645, 0.7659, 0.7673.
Sup: 0.7563, 0.7531, 0.7499, 0.7461.
