AUD/USD Resumes its Weakening Trend, Falls Below 0.7400 Level
After a brief recovery on Thursday, the AUD/USD pair on Friday fell sharply below 0.7400 handle ahead of the closely watch US monthly jobs report.
The pair on Thursday attempted a minor recovery, holding its neck just above 38.2% Fibonacci retracement level of 0.6827-0.7834 up-move. The Aussie bulls, however, surrendered on Friday and fell sharply in tandem with weakness across commodity linked currencies. The sharp drop in commodity currencies could be attributed to a sharp reversal in crude oil prices, which is now down by over 4.5% from Thursday's high of $46.04.
The pair is now trading well below 38.2% Fibonacci retracement level support and is also sustaining its weakness below 0.7400 mark.
Technical levels to watch
From current levels, an incremental selling pressure should continue dragging the pair towards its next major support near 0.7330 confluence region. This 0.7330 level comprises of 100-day SMA and 50% Fibonacci retracement level and hence, should the pair fail to hold this strong support it might turn vulnerable to continue drifting lower in the near-term.
On the upside, 38.2% Fibonacci retracement level support break-point near 0.7450 would now turn out to be immediate resistance level. Even if the pair managed to sustained a bounce back above this support turned resistance level, any further upside now seems capped at the very important 0.7500 psychological mark resistance.