The Australian dollar holds firmly in red and extended weakness to new low at 0.6722 on Thursday (the lowest since 10Oct).
China virus fears continue to weigh heavily on Aussie, which fell 1.2% this week and is on track for monthly fall of over 4%.
Bearish techs on both, daily and weekly chart add to negative sentiment, as fresh bearish signal was generated on Wednesday’s close below Fibo support at 0.6756 (76.4% of 0.6670/0.7032) that would open way towards multi-year lows at 0.6670 (2 Oct ) and 0.6643 (3 Jan 2019).
Oversold conditions suggest bears may take a breather and position for fresh push lower, with limited upside action to remain below pivotal 0.6800 resistance zone.
Res: 0.6756, 0.6777, 0.6800, 0.6808
Sup: 0.6722, 0.6710, 0.6687, 0.6670
