The Aussie remains in red for the fifth straight day and posted new 15-week low at 0.7677 on Thursday, driven further down by dovish comments from RBA deputy governor Debelle.
The pair fell sharply on Wednesday, down nearly 1% for the day after softer than expected Australian inflation data.
Fresh bearish extension on Thursday probed below 200SMA (0.7692) which contained Wednesday’s fall, signaling further downside on sustained break lower.
Bears eyes initial target at 0.7670 (Fibo 138.2% projection of the downleg from 0.7897) and could extend towards key double-Fibonacci support at 0.7630 (Fibo 61.8% of 0.7328/0.8124 / Fibo 38.2% of 0.6825/0.8124).
Meanwhile, consolidation above 200SMA could be anticipated as slow stochastic is strongly oversold on daily chart. Falling daily Tenkan-sen (currently at 0.7783) is expected to cap extended upticks.
Res: 0.7718, 0.7732, 0.7783, 0.7808
Sup: 0.7692, 0.7670, 0.7630, 0.7600
