The Aussie holds firmly in red and trends lower for the third day. The pair penetrated deeply into thick daily cloud after strong bearish acceleration on Tuesday broke and closed below cloud top (0.7905), which previously acted as strong support and now reverted to resistances.
The pair is currently riding on extended third wave of five –wave cycle from 0.8124 (08 Sep top), which eyes strong supports at 0.7807/04 (15 Aug trough / FE 161.8%) and daily cloud base at 0.7794.
Daily Tenkan-sen / Kijun-sen lines formed bear-cross which adds on bearish pressure for final push towards above mentioned targets.
However, bears may show stronger hesitation at 0.7800 support zone, as this marks key short-term support and oversold conditions of daily studies warn of correction.
Upticks should ideally stay capped by broken daily cloud to keep bears intact for further retracement of larger 0.7328/0.8124 ascend, seen on sustained break below 0.7800 breakpoint zone.
Res: 0.7888, 0.7905, 0.7948, 0.7969
Sup: 0.7820, 0.7807, 0.7794, 0.7753
