The Aussie probes again through strong supports at 0.7800 zone (daily cloud base / 15 Aug former low) as Monday’s action stands firmly in red and extends weakness from last Friday.
Close below daily cloud will be strong bearish signal for extension of bear-leg from 0.8102 (also the third wave of five-wave cycle from 0.8124 peak) towards its FE 176.4% at 0.7777 and 100SMA at 0.7766, with extension towards 0.7733 (FE 200%) seen on break of the latter.
Oversold daily studies warn of correction which may result in hesitation ant 0.7800 pivot.
Session high at 0.7847 marks initial resistance, followed by last Thursday’s high at 0.7860.
Top of daily cloud marks key near-term barrier at 0.7811.
Focus is on tomorrow’s RBA interest rate decision, with the central bank expected to keep rates unchanged at 1.5%.
Res: 0.7820, 0.7847, 0.7888, 0.7911
Sup: 0.7795, 0.7777, 0.7766, 0.7733
