AUD/USD Price Analysis: Corrects from three-year tops, slips below 0.7900 mark
|- AUD/USD struggled to capitalize on the early uptick to fresh three-year tops.
- Overbought conditions prompted profit-taking amid a modest USD rebound.
- Weakness below the overnight swing low would negate any positive outlook.
The AUD/USD pair witnessed a modest pullback from three-year tops and slipped below the 0.7900 round-figure mark during the first half of the European session.
A turnaround in the global risk sentiment provided a modest lift to the safe-haven US dollar and drove flows away from the perceived riskier aussie. This, along with overbought conditions on short-term charts, prompted some profit-taking around the AUD/USD pair.
The pair, for now, seems to have snapped three consecutive days of the winning streak and dropped to support marked by the 23.6% Fibonacci level of the 0.7724-0.7936 recent positive move. A subsequent fall below the mentioned area might prompt some technical selling.
The AUD/USD pair might then accelerate the corrective slide towards the overnight swing lows, around the 0.7855 region. This coincides with the 38.2% Fibo. level, which if broken will negate any positive bias and pave the way for a further near-term corrective slide.
The downward trajectory would set the stage for a slide towards testing the 61.8% Fibo. level, around 0.7800 round-figure mark. This is closely followed by support near the 0.7785-80 horizontal zone before the AUD/USD pair eventually drops to the 0.7750-45 support.
On the flip side, the 0.7935 region (three-year tops) now becomes immediate strong resistance. Bulls might wait for some follow-through buying before positioning for any further appreciating move towards reclaiming the key 0.8000 psychological mark.
AUD/USD 4-hourly chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.