The Australian dollar came under pressure on Wednesday dipped to 0.7862 so far, after limited recovery attempts. Falling thick hourly cloud capped upticks and continues to weigh on near-term action, maintaining negative near-term bias. Another bearish signal was generated on failure hold above former strong support (broken Fibo 38.2% of 0.7500/0.8135 rally. South-heading daily RSI shows space for further easing which needs break below Tuesday’s low at 0.7835 to signal extension of bear-leg from 0.8135 (26 Jan peak). The notion is supported by weak momentum studies. Bull-cross of 55/100SMA’s that was formed yesterday (0.7778), signals significant support and guarding 200SMA (0.7747), which may limit extended downticks. At the upside, hourly cloud base marks immediate resistance at 0.7878, ahead of cloud top at 0.7925 and converging 10/20 SMA’s (0.7996/0.7986) in attempt to form bear-cross and increase bearish pressure.
Res: 0.7878, 0.7925, 0.7953, 0.7986
Sup: 0.7835, 0.7817, 0.7778, 0.7747
. The notion is supported by weak momentum studies. Bull-cross of 55/100SMA’s that was formed yesterday (0.7778), signals significant support and guarding 200SMA (0.7747), which may limit extended downticks. At the upside, hourly cloud base marks immediate resistance at 0.7878, ahead of cloud top at 0.7925 and converging 10/20 SMA’s (0.7996/0.7986) in attempt to form bear-cross and increase bearish pressure.){kind=link}