The Aussie dollar remains in red against the greenback on Wednesday and establishing below thick daily cloud which weighs on near-term action.
Near-term bears are re-taking full control after Tuesday’s trading ended in long-legged Doji and signaled indecision, although the pair remained below cloud base and maintained negative tone.
Fresh easing eyes pivotal support at 0.7815 (daily Tenkan-sen / 50% of 0.7732/0.7897 upleg), where Tuesday’s downside attempts were rejected. Support is also reinforced by converged 10/100SMA’s and break here would generate bearish signal for further weakness towards 0.7795 (Fibo 61.8%).
Near-term structure remains bearish while daily cloud caps, however, repeated rejection at 0.7815 support zone would signal bears are running out of steam, but sustained break above daily cloud base is needed to confirm scenario and sideline persisting downside risk.
Res: 0.7834, 0.7848, 0.7860, 0.7897
Sup: 0.7815, 0.7795, 0.7771, 0.7732