Bears regained control on Wednesday after Tuesday’s Doji candle signaled indecision and kept the action temporarily on hold.
Extension of a pullback from 0.6894 double-top (July 13/14) generated fresh negative signal on break through Fibo support at 0.6780 (38.2% retracement of 0.6595/0.6894 rally), hitting one-week low on 0.65% drop in early European trading.
Close below 0.6894 pivot to keep the downside at risk, as bears pressure rising 10DMA (0.6757) and nearby 50% retracement at 0.6744, violation of which to confirm reversal and unmask the lower boundary of the recent range (0.6595/0.6899).
South-heading 14-d momentum, RSI and stochastic, maintain bearish pressure, though partially offset by daily MA’s still in full bullish setup.
Near-term bias is expected to remain with bears while the action stays below pivotal barriers at 0.6780/88 (broken Fibo 38.2% / July 17/18 spike lows).
Gloomy China’s economic growth outlook weighs on Aussie dollar, while traders await for fresh signals from Australia’s employment report (due early Thursday).
Res: 0.6780; 0.6788; 0.6824; 0.6837.
Sup: 0.6757; 0.6744; 0.6709; 0.6665.
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