The Aussie dollar continues to trend lower and hit fresh low at 0.7625 on Friday (the lowest since 11 July).
Steep downtrend extends into sixth straight day and cracked important support at 0.7632 (Fibo 61.8% of 0.7328/0.8124, 09 May / 08 Sep ascend) close below which would generate fresh bearish signal for extension of the downleg from 0.7883 (19 Oct lower top) towards 0.7530 (top of weekly cloud / weekly 100SMA). Weekly cloud is twisting next month and attracts for further weakness.
The pair is also on track for strong bearish weekly close (the biggest one-week loss since mid-November 2016) which also weighs on the price.
Meanwhile, bears may take a breather as slow stochastic is deeply oversold on daily chart and RSI is penetrating oversold territory, indicating correction but without clearer signal so far.
Also, traders are likely to book their profits on this week’s sharp fall.
However, firm bearish structure keeps the downside under pressure, suggesting limited correction.
Broken 200SMA offers initial resistance at 0.7693, with former low of 06 Oct at 0.7732 (also Fibo 38.2% of 0.7883/0.7625 descend) expected to ideally cap.
US GDP data today are closely watched for fresh signals.
Res: 0.7664, 0.7693, 0.7732, 0.7782
Sup: 0.7630, 0.7571, 0.7530, 0.7500
