AUD/USD Drops to Session Lows, Stuck Around 0.7330 Confluence Region
The AUD/USD pair reversed from its early Asian session spike to 0.7390 and has now dropped to a fresh session low of 0.7335.
During Asian session, the pair attempted to build on to its yesterday's recovery from over two-month low of 0.7300 touched during the session. The recovery, however, was short-live and the pair is now inching closer to Tuesday's low support near 0.7300 handle. With little in terms of any fresh economic triggers, the pair is likely to remain underpinned on prospects of further rate-cut from the RBA.
From technical perspective, the pair is hovering around an important confluence region comprising of 100-day SMA and 50% Fibonacci retracement level of 0.6827-0.7834, 1000-pips of up-move. This confluence region near 0.7330-20 area might now act as pivot point for the pair's near-term movement.
Technical levels to watch
On a sustained weakness below 0.7330-20 confluence support, the pair could extend its weakness below 0.7300 handle towards testing the very important 200-day SMA support near 0.7260 level. With daily RSI moving closer to near-term oversold conditions, any further weakness below 200-day SMA support could be limited till 0.7200 round figure mark, coinciding with 61.8% Fibonacci retracement level.
Meanwhile on the upside, resistance near day's peak (around 0.7370-80 area), closely followed by 0.7400 round figure mark, are immediate resistance levels to watch for. Rebound from an important support and a subsequent strength above 0.7400 might now trigger some upward momentum for the pair immediately towards 38.2% Fibonacci retracement level resistance near 0.7450 region.