AUDUSD returned to red and fell below 0.6700 mark (reinforced by daily Kijun-sen), signaling that bears are regaining control after Friday’s long-legged Doji pointed to strong indecision.
Risk sensitive Australian dollar came under increased pressure on fresh drop of China stocks) though more work at the downside will be required to signal continuation of a bear-leg from 0.6871 (Dec 28 top).
Close below 0.6700 is seen as a minimum requirement to keep near-term bias with bears and keep focus at pivotal support at 0.6641 (Friday’s spike low / Fibo 38.2% of 0.6270/0.6871 rally) loss of which to bring bears fully in play for extension towards targets at 0.6582/70 (200DMA / 50% retracement).
Moving averages are mixed on daily chart, but south-heading 14-d momentum is attempting to break into negative territory, which will add to negative near-term outlook.
Daily Tenkan-sen (0.6756) marks pivotal resistance, with firm break higher to sideline bears.
Res: 0.6729; 0.6756; 0.6771; 0.6800.
Sup: 0.6684; 0.6641; 0.6582; 0.6570.
, signaling that bears are regaining control after Friday’s long-legged Doji pointed to strong indecision.Risk sensitive Australian dollar came under increased pressure on fresh drop of China stocks) though more work at the downside will be required to signal continuation of a bear-leg from 0.6871 (Dec 28 top).){kind=link}