The Aussie accelerated sharply lower in early European hours, erasing brief gains made overnight on upbeat Australian data.
Fresh strength of the greenback put its antipodean counterpart under fresh pressure. The pair trades in red for the second day, with fresh easing testing top of daily cloud (0.7816) and seeing risk of further weakness after Doji reversal pattern was completed on daily chart.
Cloud top is reinforced by rising 10SMA and marks pivotal support, break of which would generate fresh bearish signal.
Extended pullback would face strong support provided by rising 4-hr cloud (spanned between 0.7800 and 0.7745) and next pivot at 0.7728 (Fibo 61.8% of 0.7637/0.7874).
Conversely, extended consolidation with reduced downside risk could be expected while rising 10 SMA holds.
Res: 0.7864, 0.7874, 0.7886, 0.7897
Sup: 0.7814, 0.7800, 0.7785, 0.7745
