The Aussie dollar is in red for the second day and fell sharply on Thursday, pressured by weak data from China. Chinese Caixin Manufacturing PMI unexpectedly fell in to 49.6 in May, missing the forecast at 50.1 and previous month’s 50.3 release.
Extension of bear-leg from 0.7475 (31 May high) cracked strong support at 0.7400 (Fibo 61.8% of 0.7328/0.7517 rally) with close below to signal further weakness.
Thursday’s fresh bearish acceleration also completed Failure Swing pattern on daily chart which is seen as strong bearish signal.
Below 0.7400, next target lies at 0.7373 (Fibo 76.4% retracement), with extension towards key support at 0.7328 (09 May low/weekly cloud top) not ruled out.
Corrective upticks should be ideally capped by broken 20SMA at 0.7425, with next strong barrier at 0.7450 (daily Tenkan-sen).
Res: 0.7425, 0.7450, 0.7475, 0.7500
Sup: 0.7373, 0.7350, 0.7328, 0.7300
