The Aussie dollar extended weakness through key near-term support at 0.7360 (12 July lo) on Wednesday, after previous day’s weakness completed Doji bearish reversal pattern on daily chart, while today’s break below 1.1760 pivot signals completion of failure swing pattern and generates another bearish signal.
Positive greenback’s sentiment on more hawkish than expected Powell on Tuesday keeps the Aussie pressured for final push towards key supports at 0.7325/10 (Fibo 61.8% of larger 0.6825/0.8135 ascend / the lowest since Nov 2016), break of which would signal extension of broader uptrend from 0.8135 (2018 high, posted on 26 Jan).
Daily techs in strong bearish setup support negative scenario, with converged 5/20SMA (0.7395) which mark solid resistance, expected to keep the upside limited
Res: 0.7376, 0.7395, 0.7417, 0.7442
Sup: 0.7343, 0.7325, 0.7310, 0.7250
