The Aussie dollar remains in red on Monday, under pressure from downbeat Chinese Services PMI data but so far holding above Friday’s spike low at 0.7732.
The pair holds in red for four consecutive weeks, with break below thick daily cloud last week seen as strong bearish signal for further extension of current wave C of five-wave sequence from 0.8124, which hit its 200% Fibonacci expansion on Friday and could travel to its FE 238.2% at 0.7665, which is reinforced by 200SMA.
A broken 100SMA cap today’s action at 0.7785 and is expected to keep the upside limited, guarding key barrier at 0.7800 (broken daily cloud base, reinforced by falling Tenkan-sen).
Only sustained break above 0.7800 barrier would sideline immediate bears in favor of extended correction.
Res: 0.7785, 0.7800, 0.7825, 0.7865
Sup: 0.7732, 0.7700, 0.7665, 0.7620
