The Aussie dollar fell 0.8% in Asia on Thursday, driven by political turmoil in Australia, as resignation of three senior ministers undermined position of Australian Prime Minister.
Aussie dipped to one-week low at 0.7283, also pressured by firmer greenback after the minutes of latest FOMC policy meeting signaled that the Fed is on the way for another rate hike.
Fresh bearish acceleration probed below pivotal 10SMA support (0.7296), weakening near-term structure, which could be further hit on close below 10SMA and deterioration of political situation.
Technical studies on daily chart support scenario as MA’s returned to bearish setup and momentum turned south, while slow stochastic reversed from overbought territory.
Bears eye next significant support at 0.7270 (Fibo 61.8% of 0.7202/0.7381 upleg), loss of which would expose key support at 0.7202 (15 Aug low).
At the upside, broken daily Kijun-sen (0.7333) marks solid barrier, with stronger upticks to be capped by falling 20SMA (0.7347).
Res: 0.7313, 0.7333, 0.7347, 0.7370
Sup: 0.7283, 0.7252, 0.7202, 0.7158
