The Australian dollar extends downtrend after bears paused on Monday, with fresh bearish acceleration on Tuesday registering 0.9% loss since Asian opening.
Aussie came under increased pressure on concerns about the damage to the economy caused by huge fires in Australia.
Fresh weakness took out important supports at 0.6913 (bull-trendline off 0.6754) and 0.6896 (200DMA), generating strong bearish signals which will require confirmation on daily close below.
Daily momentum is breaking into negative territory, stochastic and RSI are heading south and adding to negative signals.
Bears pressure pivotal support at 0.6860 (Fibo 61.8% of 0.6754/0.7032, reinforced by 55DMA), loss of which would confirm reversal and open targets at 0.6838 (higher base) and 0.6825 (100DMA / top of thin daily cloud).
Broken 200DMA reverts to solid resistance, guarding broken bull-trendline, which are expected to keep the upside protected and maintain bearish bias.
Res: 0.6896, 0.6913, 0.6925, 0.6942
Sup: 0.6860, 0.6838, 0.6825, 0.6800
