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   “¢   The USD pares the post-election result losses and prompts some fresh selling.
   “¢   Weaker commodities weigh on Aussie and exert some additional pressure.

The AUD/USD pair struggled to build on early strong up-move and quickly retreated around 30-35 pips from fresh six-week tops touched earlier today.

The incoming US mid-term election results pointed to a split Congress in the US and prompted some fresh US Dollar weakness during the Asian session on Wednesday.  

The pair quickly reversed an early dip to the 0.7200 neighborhood and rallied to an intraday high level of 0.7273, the highest since Sept. 26, albeit failed to extend the positive momentum.

With investors still assessing risks of a divided Congress, a modest USD rebound capped any further up-move, with the pair stalling this week’s goodish up-move and facing rejection near 100-day SMA strong barrier.

It would now be interesting to see if the pair is able to find some fresh buying interest at lower levels or the current pullback marks the end of recent recovery move from over 32-month lows, touched on Oct. 26.

There isn’t any major market-moving economic data due for release from the US and hence, investors now look forward to the latest FOMC monetary policy update on Thursday for some fresh directional impetus.

Technical levels to watch

Any subsequent retracement might continue to find support near the 0.7210-0.7200 region, below which the pair is likely to accelerate the fall towards weekly lows, around 0.7180 area before eventually dropping to mid-0.7100s.

On the flip side, the 0.7265-70 region (100-DMA) might continue to act as an immediate strong hurdle, which if cleared should lift the pair further towards reclaiming the 0.7300 handle en-route the 0.7315-20 supply zone.