- Aussie extends weakness ahead of RBA rate decision, AUD/USD down 0.16% on the day.
- The pair finds major support on the downside at 0.78 handle which is also daily cloud base support.
- Technical studies are heavily bearish. 100-DMA at 0.7771 is next major support.
- Weekly RSI and Stochs have rolled over from overbought. MACD is showing a bearish crossover on signal line.
- Break below 0.78 support to see test of 100-DMA at 0.7771 ahead of 200-DMA at 0.7655.
- On the flipside, 5-DMA at 0.7833 is immediate resistance, break above will see test of 50-DMA at 0.7938.
Support levels - 0.78 (cloud base), 0.7771 (100-DMA), 0.7756 (38.2% Fib retrace of 0.71599 to 0.81250 rally)
Resistance levels - 0.7833 (5-DMA), 0.7897 (23.6% Fib), 0.7938 (50-DMA)
Recommendation: Watch out for break below daily cloud for further weakness. Target 0.7770/ 0.7715/ 0.7655.
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