Recovery attempts on Wednesday from new three-month low at 0.7678 (posted on Tuesday) were so far short-lived.
Bunce stalled on probe above initial barrier at 0.7700 and subsequent fall kept immediate focus at the downside.
Firm bearish setup of daily techs, with multiple death-crosses (10/200 and 20/200SMA’s and 10/20 SMA bear-cross) maintain bearish pressure.
Meanwhile, bears could be further delayed as slow stochastic turned sideways deeply in oversold territory and may generate positive signal on reversal.
FOMC policy decision is due later today and eyed for stronger signal, as wide expectations go for hawkish stance of the US central bank which would further boost the greenback.
On the other side, softer tone from Fed would weaken dollar bulls and send Aussie higher.
Former key support, provided by 100SMA , now acts as strong resistance (0.7773) and close above it is need to undermine dollar’s bulls and allow for stronger correction of 0.7916/0.7678 bear-leg.
Res: 0.7707, 0.7725, 0.7742, 0.7773
Sup: 0.7678, 0.7650, 0.7626, 0.7600
