The Aussie dollar was slightly higher on Friday after previous day’s strong fall was contained at 0.7200 (20SMA / 50% of 0.7085/0.7314 upleg).
Consolidation is likely to precede fresh downside as Thursday’s long bearish daily candle weighs and the pair is on track for weekly close in red after two weeks of rallying, which is negative signal.
Break below 0.7200 handle would open way towards next pivot at 0.7172 (Fibo 61.8% of 0.7085/0.7314) and confirm an end of corrective phase on extension below.
Converged 5/10/30SMA’s mark solid resistance at 0.7240 zone which is expected to cap upticks and maintain bearish bias.
Res: 0.7227, 0.7240, 0.7268, 0.7296
Sup: 0.7200, 0.7172, 0.7139, 0.7100
