The Aussie remains in red for the fourth straight day and dented strong support at 0.7807 (15 Aug former trough), coming ticks ahead of another significant support provided by daily cloud base at 0.7794.
The price bounced after hitting new 2 ½ month low at 0.7799 which could be seen as consolidation ahead of final push below cloud top.
The zone between 0.7820 and 0.7794 marks very strong support, consisting of Fibo 38.2% of 0.7328/0.8124 rally / former higher low and daily cloud base and the broader bears may take a breather here. The notion is supported by oversold slow stochastic on daily chart, however, limited upside action is expected.
Session high at 0.7856 marks initial resistance ahead of Wednesday’s high at 0.7888 and daily cloud top at 0.7911, which is expected to cap extended upticks.
The pair is riding on extended third wave of five-wave sequence from 0.8124 peak, which could travel to 0.7777 (FE 176.4% and 0.7733 (FE 200%).
Res: 0.7856, 0.7888, 0.7911, 0.7951
Sup: 0.7807, 0.7794, 0.7777, 0.7758
