The Australian dollar is holding near a new six-month low (0.7476) hit following last week’s nearly 3% drop after the US central bank signaled earlier than expected action in changing monetary policy that inflated the US dollar.
The Aussie was additionally pressured by a 9% drop in iron ore, Australia’s biggest export earner.
Overextended daily studies signal that bears may pause for limited consolidation (ideally to be capped by broken 200DMA (0.7550) before continuing last week’s sharp bearish acceleration.
Completion of failure swing pattern on daily chart adds to bearish daily techs and soured sentiment.
Res: 0.7499, 0.7522, 0.7550, 0.7585.
Sup: 0.7476, 0.7400, 0.7379, 0.7349.
