The Aussie dollar accelerated lower in Asian session on Wednesday, after the US said on Tuesday it would impose an extra tariff on Chinese goods. The Australian dollar is considered as a proxy for China-related trades and reacted negatively on the latest news, falling around 50 pips overnight. Fresh weakness cracked pivotal support at 0.7417 (Fibo 38.2% of 0.7310/0.7483 upleg and pressures another important point at 0.7400 (converged 10/20SMA’s. Firm break here is needed to confirm double-top at 0.7483 (09/10July tops) and generate stronger bearish signal. Daily slow stochastic reversed from overbought territory and 14-d momentum turned south, pressuring the midline and its 7-d MA, in attempt to generate fresh bearish signal and further support renewed bears. Extension below 0.7400 handle would open next pivot at 0.7376 (Fibo 61.8% of 0.7310/0.7483, reinforced by thin daily cloud) break of which would confirm reversal. Broken 5SMA marks initial resistance at 0.7430, while falling 30SMA (0.7469), which repeatedly limited upside attempts, maintains pressure and is expected to cap stronger uptick.
Res: 0.7430, 0.7456, 0.7456, 0.7469
Sup: 0.7400, 0.7376, 0.7361, 0.7310
