The Aussie dollar accelerated sharply lower on Tuesday after strong four-day recovery rally was capped by daily Kijun-sen at 0.7608 after brief probe above daily cloud on Monday.
Fresh weakness was triggered by release of minutes for Australian central bank’s April meeting that suggested caution on rate views.
Strong pullback that so far retraced 50% of 0.7471/0.7608 rally also broke below 200SMA at 0.7550 that may further weaken near-term structure on daily close below.
Daily Tenkan-sen at 0.7540 has been dented and bears are pressuring next pivot at 0.7523 (Fibo 61.8% of 0.7471/0.7608), loss of which will confirm reversal.
Slow stochastic emerged from oversold territory and shows plenty of space at the downside, as daily MA’s are returning into full bearish setup and daily indicators are in negative territory, supporting for further easing.
However, strongly oversold near-term studies suggest a pause in current fall. Corrective attempts should be capped by hourly cloud (spanned between 0.7554/77) which now reverted to resistance.
Res: 0.7550, 0.7577, 0.7583, 0.7594
Sup: 0.7536, 0.7523, 0.7503, 0.7471
