The Australian dollar recovers briefly on Monday, on bounce from new low at 0.7098 (the lowest since 15 Feb 2016) to 0.7126 (session high), but the move could be seen as consolidation before broader bears resume.
Last Friday’s eventual close below key supports at 0.7160 zone (lows of 2016/17) was strong bearish signal, reinforced by the second straight strong bearish weekly close. Daily/weekly studies are in firm bearish setup and maintain strong negative momentum, supporting bears for test od psychological 0.7000 support and 0.6906 (04 Sep 2015 low), with key longer-term support at 0.6825 (15 Jan 2016 low), coming in focus.
Limited corrective action is expected, with extended upticks to face strong barriers at 0.7200 zone (15 Aug former low/last Friday’s high/falling 10SMA).
Res: 0.7126, 0.7144, 0.7200, 0.7235
Sup: 0.7098, 0.7022, 0.7000, 0.6954
