The Aussie dollar moved lower after receiving minor support from solid Australian business confidence data in Asia, as upside attempts were capped by falling 10SMA (0.7538).
This increases risk of three-day recovery stall, as Friday’s action ended in long-legged Doji and was capped by falling 10SMA.
Firm bearish setup of daily MA’s and weak momentum studies maintain pressure as recovery attempts are showing initial signs of stall, being also weighed by falling thick 4-hr cloud.
Today’s close in red would add to negative outlook and increase risk of retesting near-term base at 0.7472 and continuation of the downtrend from 0.8135 (2018 high).
Alternatively, firm break above 10SMA would sideline immediate downside risk and expose next pivotal barrier at 0.7602 (Fibo 38.2% of 0.7812/0.7472 descend).
Res: 0.7538, 0.7560, 0.7583, 0.7602
Sup: 0.7500, 0.7472, 0.7456, 0.7420
