The Aussie dollar holds in red for the second day and extends pullback from 0.7950 zone where multiple upside rejections occurred in recent sessions.
This could be seen as a signal further weakness and lower top formation.
The price returned below 10/20SMA’s with persisting bearish momentum that could put the pair under stronger pressure.
Key near-term support lies at 0.7867 (last Friday’s low/Fibo 61.8% of 0.7807/0.7962 recovery leg) and sustained break here would give stronger signal of lower top and open key support at 0.7807(15 Aug low) for retest.
Broken 20SMA caps today’s action and marks initial resistance at 0.7918, guarding key barriers at 0.7950/62 (recent upside rejections) break of which will be bullish.
Res: 0.7918, 0.7950, 0.7967, 0.8000
Sup: 0.7867, 0.7844, 0.7807, 0.7786
