AUD/USD Retraces but Holds its Neck Above 0.7600 Level
pair retraced from 0.7657 and following the release of US GDP data
dipped below 0.7600 handle to currently trade near 0.7610 level.
Wednesday's weak Australian CPI number led to sharp fall in the AUD/USD pair, taking if below 0.7550 level. On Thursday, broad USD weakness led by BoJ disappointment, assisted the pair to register some minor recovery. The pair, however, failed to extend the recovery momentum and reversed from an immediate strong resistance near 0.7650-60 area.
Technical levels to watch
The pair is reversing from its immediate resistance and hence, a subsequent weakness below 0.7600 mark now seems to drag the pair back towards Wednesday's low support near 0.7550-45 region. A follow through selling pressure below 0.7550 support has the potential to drag the pair towards testing 50-day SMA support, currently near 0.7525-15 zone.
Alternatively, a push through 0.7650-60 immediate resistance opens room for further recovery towards 0.7690-0.7700 round figure mark, which if conquered would now negate any further bearish outlook on the pair.