- The AUD/USD pair struggled to find acceptance above the key 0.70 psychological mark and has now trimmed a part of its early gains to fresh weekly tops.
- Friday’s mixed Chinese trade balance data prompted some long-unwinding trade at higher levels amid the lack of any progress in the US-China trade talks.
Despite the intraday pullback of around 20-25 pips, the pair managed to defend 200-hour SMA support, which should now act as a key pivotal point for intraday traders and ahead of comments by Chicago Fed President Charles Evans.
Any subsequent slide is likely to find some support near the 0.6965 horizontal level, below which the pair is likely to accelerate the downfall back towards the 0.6925 intermediate support before eventually dropping to the 0.6900 handle.
Meanwhile, technical indicators maintained their bullish bias on hourly and daily charts, supporting prospects for dip-buying to emerge at lower levels that should help limit any sharp intraday downfall, at least for the time being.
On the upside, sustained move beyond the 0.70 handle is likely to accelerate the momentum towards the 0.7035-40 supply zone before the pair eventually aims towards its next resistance near the 0.7060-65 region en-route the 0.7100 handle.
AUD/USD 1-hourly chart