Australian dollar hit new (marginally lower) 2023 low on Tuesday, in extension of fresh weakness, sparked by higher US dollar and drop in base metal prices.
Bears cracked the floor of a larger range (0.6563/0.6818, since early March) and also pressure nearby key Fibo support at 0.6547(61.8% retracement of 0.6170/0.7157 uptrend), with sustained break of support zone to signal continuation of a downtrend from 0.7157 (2023 high of Feb 2) which was paused for consolidation in past 2 ½ months.
Bearish daily studies support the action, though significance of the support (annual low which resisted several attacks) and south-heading stochastic about to break into oversold territory, warn of increased headwinds.
Bears may slow at this area but expected to remain in play while the price action stays below falling 10DMA (0.6645).
Sustained break of 0.6560/47 pivots to spark fresh acceleration lower and expose next targets at 0.6400 zone (Fibo 76.4% / Nov 10 low).
Only firm break of upper pivots lay at 0.6670/80 zone would sideline bears and signal prolonged range-trading.
Res: 0.6618; 0.6645; 0.6680; 0.6707.
Sup: 0.6547; 0.6516; 0.6480; 0.6422.
 2023 low on Tuesday, in extension of fresh weakness, sparked by higher US dollar and drop in base metal prices.){kind=link}