The Australian Dollar is looking weaker against the American Greenback again as the pair kissed the 61.8% retracement level at 1.0207 last week and printed a strong Bearish candle the next day. Friday saw price consolidate at the 1.005 range and has opened the week under the 62 EMA and the Weekly Pivot at 1.0089. There is a strong bearish hook to the moving averages which can often offer some insight into the future direction of a pair, and similar hooks can be seen on the '6 Cousins', the most traded pairs. Price will nee to close below 1.0005 in order to confirm the Bearish continuation and may be prevented from going further, at least immediately by a strong support zone below at 0.9925. Both the Weekly S1 & Monthly Pivot also converge at this level, 0.9952 & 0.9939 respectively adding strength to the level of support. Once price breaks below this zone, there will be additional Support at 0.9874 and then a nice vacuum to 0.9700. If price turns Bullish, look for resistance where the Weekly R1 and Monthly R1 converge averaged at 1.0200.
Happy Trading!