- AUD / USD is struggling to hold intraday gains at week-long highs amid a sustained buy in the USD.
- The weakness below the 0.7600 level will now be seen as a new trigger for the bears.
The AUD / USD pair is extending its intraday retracement decline from the one-week highs and has fallen to fresh daily lows, around the 0.7600 level at the start of the American session.
A sustained break below the 100 hourly simple moving average has been considered a key trigger for bears amid strong buying interest in the US dollar. Against the background of the optimistic US economic outlook, a strong intraday rally in US Treasury yields has provided an additional boost to the US dollar.
Meanwhile, the technical indicators on the daily chart have started to move towards the negative zone and support the prospects for an extension of the recent bearish movement. With that said, the AUD / USD pair has, so far, shown some resistance below the 100-day SMA, which warrants caution for bears.
Therefore, it will be prudent to wait for some subsequent selling below the 0.7600 level before opening new bearish positions. The AUD / USD pair could become vulnerable to further weaken below the monthly lows around the 0.7565-60 region and accelerate the slide to test the key psychological level of 0.7500.
On the other hand, the closing level of the previous day, around the 0.7630 region, now appears to act as a strong immediate resistance. Any subsequent movement could be seen as an opportunity to initiate new bearish positions and once again disappear near the daily highs, around the 0.7660-65 region.
That said, some subsequent purchases will nullify the negative outlook and trigger some short-hedging movement. The AUD / USD pair could then aim to regain the round 0.7700 level.
AUD / USD 1 hour chart
AUD / USD technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
