Australian dollar accelerated lower on Monday, driven by fresh risk aversion that inflated its US counterpart.
The Aussie hit new two-year low and generate strong bearish signal on break through important Fibo support at 0.6758 (50% retracement of 0.5509/0.8007, 2020/2021 rally) with close below this level to verify the signal and open way for further easing.
Round-figure support at 0.6700 and June 2020 low at 0.6647 mark next targets, violation of which would unmask 0.6463/39 (Fibo 61.8% of 0.5509/0.8007 / monthly cloud base).
Daily studies are at full bearish setup and support the action, with limited upticks to be capped by falling 10DMA (0.6835) which tracks downtrend for one month, to offer better selling opportunities.
Res: 0.6761; 0.6798; 0.6835; 0.6874
Sup: 0.6700; 0.6647; 0.6601; 0.6547
