The AUD/USD pair struggled to find acceptance above the 0.7800 round-figure mark and witnessed an intraday turnaround on Tuesday. The aussie remains at the mercy of USD price dynamics and is set to see selling pressure on a break below the 0.7735 area, FXStreet’s Haresh Menghani briefs.
Key quotes
“Market participants now look forward to the release of monthly Retail Sales data for some impetus. Apart from this, the US bond yields will play a key role in influencing the USD price dynamics. In the meantime, traders might take cues from the broader market risk sentiment to grab some meaningful trading opportunities around the major. The key focus, however, will be on Australian employment details, scheduled for release during the Asian session on Thursday.”
“AUD/USD stalled its downfall near a one-week-old ascending trend-line. The mentioned support coincides with 200-hour SMA and is currently pegged near the 0.7735 region, which if broken decisively might prompt some aggressive technical selling. The aussie might then accelerate the fall further towards the 0.7700 round-figure mark before eventually dropping to the 0.7660 horizontal support. Some follow-through weakness should pave the way for a slide back towards testing sub-0.7600 levels.”
“Momentum back above the 0.7800 mark is likely to confront some resistance near multi-year tops, around the 0.7820 region. A sustained move beyond will be seen as a fresh trigger for bullish traders and set the stage for the resumption of the prior/well-established bullish trend. The momentum has the potential to push the pair further towards the 0.7900 round-figure mark with some intermediate hurdle near the 0.7855-65 zone.”
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