The Australian dollar dipped below 0.73 support in early European trading on Wednesday, extending steep fall into the fifth straight day, pressured by rising US dollar.
A much stronger than expected drop in Australia’s June retail sales, caused by new lockdowns, contributed to Aussie’s weakness.
Bears eye target at 0.7231 (200WMA/Fibo 76.4% of 0.6991/0.800 upleg), violation of which would add to negative stance.
Daily moving averages are in full bearish setup and rising negative momentum points to a continuation of the downtrend, but oversold conditions generate an initial signal that bears may run out of steam soon.
Upticks are expected to offer better selling opportunities as long as falling 10DMA (0.7409) caps, while break here would ease bearish pressure and signal stronger correction.
Res: 0.7340, 0.7389, 0.7409, 0.7444.
Sup: 0.7231, 0.7204, 0.7158, 0.7115.
