Australian dollar fell around 0.9% in Asia / early Europe on Friday, deflated by fading risk appetite as US recession fears grow.
The US dollar also regained traction on rising bets for another Fed rate hike in May, despite softer economic data, adding pressure on Aussie dollar.
Fresh weakness emerges after a multiple failure to clearly break above 200DMA (0.6741), with formation of bull-trap and 55/200DMA bear-cross, contributing to negative signals.
In addition, repeated rejections at the base of thick falling daily Ichimoku cloud warn that recovery leg from 0.6563 (2023 low posted on Mar 10) lacks strength to resume.
Daily technical studies are turning to bearish mode as 14-d momentum broke into negative territory, south-heading RSI moved below neutrality zone and thickening descending daily cloud adds pressure.
Fresh bears so far retraced over 50% of 0.6563/0.6805 recovery and eye pivotal supports at 0.6656/44 (Fibo 61.8% / bull-trendline connecting 0.6563 and 0.6619 lows), guarding key 0.6620 level (Apr 10 trough / Fibo 76.4%) loss of which will confirm a double-top (0.6793/0.6805) and risk retest of 0.6563 low.
US Apr PMI data, due later today, will be in focus for fresh signals.
Res: 0.6702; 0.6731; 0.6741; 0.6771.
Sup: 0.6644; 0.6620; 0.6600; 0.6563.
