AUD/USD Recovers Sharply to Move Back Above 0.7800 Handle
As oil prices stabilized AUD/USD recovered sharply from early morning lows of 0.7767 and moved back above 0.7800 mark, erasing all of its early morning losses and trade with some marginal gains.
Near-term upside could be capped
The pair has been one of the key beneficiaries of the recent risk-on rally across various asset classes. Any signs of recovery in crude oil prices would now be good enough for bulls to push the pair through a short-term ascending trend-channel resistance near 0.7835-40 area. With daily and H4 RSI moving closer to near-term over-bought conditions, the pair doesn't seem to be in a hurry to break past the immediate strong resistance. However, an eventual break above 0.7840 key resistance would open room for continuation of the pair's near-term appreciating move.
On the immediate downside, day's lows of 0.7767 closely followed by 0.7750 mark seems to continue providing immediate support. Weakness below 0.7750 mark could get extended towards 0.7720 horizontal support and below 0.7720 the pair might eventually drop towards testing the trend-channel support near 0.7700 mark.
(Market News Provided by FXstreet)