AUD/USD Challenges Trend-Channel Support
Extending its reversal from yesterday's high of 0.7834, the AUD/USD pair momentarily dropped below 0.7730 support just to recovery back and trade close to 0.7750 level.
AUD/USD continues to hold ascending trend-channel support
Broad USD strength and weakness in crude oil prices has been the key factor driving commodity-linked currencies lower.
On short-term technical chart, although the pair has been weakening, it has managed to hold an ascending trend-channel support near 0.7730-25 area. Hence, it would be prudent to wait for a decisive break below this immediate support before Short traders kick-in and drag the pair lower. Sustained trade below 0.7730 is likely to take the pair immediately towards 0.7690 support and the weakness could further get extended in the near-term.
Alternatively, rebound from current support level might continue to face immediate resistance near 0.7765-70 area, which if conquered should be aiming back for 0.7800 round figure mark resistance. After repeatedly failing to sustain its strength above 0.7800 mark, rebound from trend-channel support and a subsequent break above 0.7800 mark resistance would point towards a near-term short-covering bounce, possibly towards the trend-channel resistance, currently near 0.7875-80 region.