- The Australian dollar declined, extending losses for the fourth straight session, as risk sentiment weakened after President Donald Trump disappointed markets with a coronavirus plan light on details.
- On Wednesday, U.S. President Donald Trump announced the United States will suspend all travel from Europe as he unveiled measures to contain the coronavirus epidemic.
- However, his address from the Oval Office was light on medical measures beyond assurances that the virus has no chance against us.
- The Aussie was trading 0.7 percent down at 0.6438, having hit a low of 0.6314 on Monday, it’s lowest since March 2009.
- Technical indicators are bearish: RSI weak at 29, Stochs are biased lower and MACD supports downside.
- Immediate resistance is located at 0.6497, a break above could take it near 0.6535.
- On the downside, support is seen at 0.6427, a break below could drag it till 0.6412.
Recommendation: Good to sell on rallies around 0.6480, with stop loss of 0.6497, and target price of 0.6427.
