AUD/USD Review: Bullish move once again rejected near 0.7440 supply zone
| • Friday’s goodish rebound from closer to YTD lows quickly fizzles out.
• Subdued commodity prices fail to provide any fresh bullish impetus.
• Traders even shrugged off the ongoing USD retracement slide.
The AUD/USD pair surrendered early modest gains and is currently placed at the lower end of its daily trading range, around the 0.7415-10 region.
The pair struggled to build on Friday's strong rebound from closer to YTD lows and once again met with some fresh supply near the 0.7440 horizontal zone, which has been acting as a stiff resistance over the past one-week or so.
The US Dollar continues to be weighed down by the US President Donald Trump's comments on Friday, criticizing the recent greenback strength, albeit renewed trade war fears kept a lid on any strong follow-through up-move for the China-proxy Australian Dollar.
Meanwhile, a mildly weaker tone around commodity space also did little to provide any meaningful boost to commodity-linked currencies - like the Aussie and further collaborated to the pair's modest retracement of around 30-pips from Asian session tops.
Technical Analysis
Looking at the broader picture, the pair has been oscillating within a broader trading range over the past six weeks or so and any meaningful recovery attempts have been sold into, clearly indicating additional near-term bearish potential.
Moreover, the pair's inability to register any meaningful recovery and a consolidative price action below the key 0.7500 psychological mark further reinforce the expectations that the near-term downfall might still be far from over.
However, it would be prudent to wait for a decisive break through the mentioned range before positioning for the pair's next leg of directional move.
Spot rate: 0.7412
Daily High: 0.7438
Trend: Sideways
Resistance
R1: 0.7438 (current day swing high)
R2: 0.7478 (50-day SMA)
R3: 0.7500 (psychological round figure mark)
Support
S1: 0.7387 (100-period SMA H1)
S2: 0.7344 (S1 daily pivot-point)
S3: 0.7315-10 (recent swing lows)
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