The Aussie dollar holds in red for the second straight day and extends weakness to new three-week low at 0.7156 on Wednesday.
Fresh weakness broke below pivotal support at 0.7172 (Fibo 61.8% of 0.70850.7314 rally), in the second attempt after Tuesday’s probe failed to close below support.
Broken previous strong support at 0.7200 (20SMA / 50% retracement) now acts as solid resistance and caps today’s action.
Negative sentiment is reinforced by rising bearish momentum and MA’s in full bearish setup on daily chart.
Bears look for close below 0.7172 pivot to generate negative signal for test of 0.7140 (Fibo 76.4% / 17 Sep trough), with extension towards key support at 0.7085 (11 Sep low) not ruled out.
Res: 0.7172, 0.7200, 0.7220, 0.7232
Sup: 0.7140, 0.7100, 0.7085, 0.7030
