AUD/USD Rejected from Above 0.7300
The aussie is up against the US dollar on Monday but it failed to hold
above the important 0.7300 handle and pulled back trimming gains.
Near 10-week lows
AUD/USD
opened the week trading at the lowest level since early March and
bottomed at 0.7242 before bouncing to the upside amid a weak US dollar
and a recovery in commodities prices. After rising from 0.7250 to 0.7292
on Asian hours, it peaked at the beginning of the American session at
0.7308 and then turned to the downsides.
Price failed to hold above 0.7300 and dropped to 0.7280/85 where
currently trades, 20 pips above Friday’s closing price. Last week the
pair posted the fourth weekly decline in a row with the first close
below the 20-week moving average since February.
On Tuesday, the main event in Australia will be the release of the
central bank minutes of the latest meeting (when they lowered the main
rate) while in the US, traders will look into CPI numbers.
AUD/USD technical levels
To the upside, resistance levels might be located at 0.7305/10 (daily
high), 0.7330/35 (May 6 & 11 low) and 0.7400 (last week high). On
the flip side support could be seen at 0.7275 (European session low),
0.7240/45 (daily low) and 0.7200 (psychological).
