- AUD/USD rebounds from 0.7715 but the upside appears limited.
- 100-HMA at 0.7765 could be a tough nut to crack for the AUD bulls.
- RSI has turned south below 50.00, with 21-HMA support at risk once again.
AUD/USD is consolidating its bounce around 0.7750, as it appears to lack follow-through upside bias, despite the retreat in US Treasury yields.
The aussie founds fresh bids once again around 0.7715 levels and rose to towards 0.7750 after the Australian unemployment rate unexpectedly dropped to 5.5% in April while the economy lost 30.6K jobs last month, probably in the aftermath of the JobKeeper wage subsidy scheme expiration.
However, the further bounce appears limited amid negative S&P 500 futures and the recent weakness in copper prices, as China cracks down on commodities trading.
At the time of writing, the aussie is trading around 0.7750, up 0.31% on the day, with the immediate upside likely to be capped by the horizontal 100-hourly moving average (HMA) at 0.7765.
The Relative Strength Index (RSI) has turned lower, piercing through the midline, suggesting that the renewed uptick could be losing momentum.
AUD/USD hourly chart
.
If the downside resumes, the 21-HMA support 0.7738 could be initially probed. A sustained break below the latter could expose Wednesday’s low of 0.7710. Falling trendline support also coincides near that level.
The previous week low of 0.7688 could be the next target for the AUD sellers.
AUD/USD additional levels to watch
Share
