The Aussie dollar fell sharply in Asia and extended weakness at the beginning of European session on Wednesday, making so far loss of 1.3%.
Comments from RBA Governor Lowe overnight, who opened the door for possible rate cut that prompted investors out of the Aussie positions.
Strong bearish acceleration surged through daily cloud and a cluster of daily MA’s that presented strong support zone between 0.7205 and 0.7144, weakening near term structure for further weakness. With daily MA’s now in bearish setup and south-heading momentum in the negative territory, focus turns towards next key supports at 0.7075/70 (25 Jan trough/Fibo 38.2% of 0.6706/0.7295 ascend) , violation ow which would produce strong bearish signal and expose psychological 0.70 support (also 50% retracement of 0.6706/0.7295).
Res: 0.7156, 0.7190, 0.7245, 0.7264
Sup: 0.7126, 0.7093, 0.7070, 0.7000
