The Australian dollar fell on Friday, driven by strong fall in China’s stocks on rising concerns over China’s growth and doubts whether US President Trump and China’s Xi could reach the deal and prevent the escalation of persisting trade conflict in their next week’s meeting. Thursday’s close in red and Friday’s extension lower which returned to daily cloud (cloud top lays at 0.7247) weakened near-term structure. Studies on lower timeframes turned to full bearish mode while momentum on daily chart is heading south and about to break into negative territory, adding to negative outlook. Fresh bears pressure key support at 0.7215/02 (Fibo 38.2% of 0.7020/0.7335, reinforced by rising 20SMA/21 Nov trough), with break and weekly close below, to risk deeper fall and unmask supports at 0.7174/64 (55SMA/13 Nov higher low). Broken daily Tenkan-sen (0.7250) is expected to cap upticks.
Res: 0.7250, 0.7277, 0.7300, 0.7335
Sup: 0.7215, 0.7202, 0.7174, 0.7164
