The Aussie dollar is a tad higher in European trading on Friday dipping to 0.7003 low in Asia, driven by weak China’s data that further soured risk sentiment.
The pair cracked Thursday’s low (0.7005) but faces strong headwinds from psychological 0.70 support (also 50% retracement of 0.6706/0.7295) and may hold in extended consolidation before renewed attack at 0.70 pivot.
Break here would open way for extension of bear-leg from 0.7199 (27 Feb lower top) towards next significant support at 0.6931 (Fibo 61.8% of 0.6706/0.7295 rally).
The notion is supported by Thursday’s close below the neckline of asymmetric H&S pattern on daily chart (0.7021) would add to negative outlook.
Daily cloud base marks solid resistance at 0.7050 which should ideally cap and keep intact pivotal barriers at 0.7090 (cloud top / 10SMA) and 0.7102 (20SMA), break of which would sideline bears.
US jobs data could further pressure Australian dollar on strong release.
Res: 0.7028, 0.7050, 0.7090, 0.7102
Sup: 0.7000, 0.6931, 0.6900, 0.6845
