AUD/USD Tests 0.7730 Immediate Resistance
Broad based USD selling pressure lifted the AUD/USD
pair back above 0.7700 mark to session high of 0.7729, representing a
short-term ascending trend-channel break-point turned immediate
Ahead of the two-day FOMC meeting starting Tuesday, traders seem to unwind their USD bullish positions on belief that the US Federal Reserve will keep its monetary policy stance unchanged for some more time.
Technical levels to watch
On H4 chart, the pair has decisively broken below a short-term ascending channel support near 0.7730 level. Hence any further pull-back is likely to face immediate resistance at its previous support near 0.7730 level.
Reversal from current resistance area should find immediate support near day's low near 0.7690 level, which if breached should extend the fall further towards its next major support near 0.7660 confluence region. This 0.7660 confluence support comprises of 20-day SMA and 50% Fibonacci retracement level of 0.7492-0.7834 up-swing.
On the flip side, extension of the bounce back momentum beyond the current 0.7730 resistance level is likely to assist the pair towards 0.7770 resistance level before it makes a fresh attempt to climb higher towards its next major resistance near 0.7800 handle.