Australian dollar rallied last Friday

Although the Australian dollar rallied last Friday as suggested in our previous update (you can fill in our Buy recommendation) and climbed above the cloud Ichimoku 4 hour chart, Aussie hit the heavy selling pressure there falls, the price fell back below the Ichimoku cloud area, this type of price action means further choppy consolidation would take place.

At present, we still expect the Aussie to fall to 0.7950 (just below the 61,8% Fibonacci retracement from 0.7850 to 0.8120 in), however, in view of the aforementioned consolidative Outlook, 0.7900/10 should limit downside Aussie and the currency pair can phase back from there.

Therefore, while we are advised to sell the Aussie charge to fall to 0.7950, we will also endeavor to purchase 0.7950 rebound to 0.8035 (a relatively smaller target).

If the price breaks below 0.7900/10, it would risk falling further strong support to the area of ​​0.7828 to 0.7850 which is still expected to remain unchanged. The head when resistance 0.8120 (Friday's high) is broken, and then rose from 0.7850 to extend to 0.8170/80 but 0.8238 resistance will continue to hold.