The Aussie dollar broke through key support at 0.7085 (11 Sep low) and hits new lows (the lowest since Feb 2016) in extension of Wednesday’s strong bearish acceleration which resulted in 1.2% fall in one day.
Break below 0.7085 marked full retracement of 0.7085/0.7314 correction and generated strong bearish signal which needs confirmation on close below 0.7085 pivot.
Negative sentiment is boosted by strengthening dollar on upbeat US economic data and signals of more aggressive Fed in the near future.
Firmly bearish daily/weekly techs add to negative outlook, with psychological 0.70 support and 0.6972 (Feb 2016 low) being in immediate focus, violation of which would expose key longer-term support at 0.6825 (15 Jan 2016 low, the lowest since 2009).
Deeply oversold daily slow stochastic continues to head south, but gives warns of corrective action in the coming sessions.
Res: 0.7085, 0.7111, 0.7140, 0.7160
Sup: 0.7072, 0.7030, 0.7000, 0.6972
