AUD/USD Struggling to Conquer 0.7800 Mark
As oil extends its reversal on Tuesday from an early slump on Monday,
commodity linked currencies also continue with their sharp rebound.
AUD/USD pair tested 0.7800 mark for the first time since June 2016. However, further gains were capped at a strong resistance confluence comprising of 38.2% Fibonacci retracement level of 0.9401-0.6827 steep fall and upper trend-line resistance of a short-term ascending channel formation on H4 chart. A strong follow through buying interest should assist the pair to surpass this important resistance confluence and continue trending higher in the near-term.
Meanwhile, on the downside 0.7770-65 area seems to have emerged as immediate support. Weakness below this immediate support is likely to get extended initially towards 0.7750 round figure before the pair drops further towards its next support near 0.7720-15 horizontal area.
US housing data, due for release today, and RBA Governor’s speech at the Credit Suisse Global Macro Conference would be the key factor determining near-term movement for the pair.