AUD/USD clings to strong gains above 0.7600 handle

Haresh Menghani FXStreet

After an initial dip below 0.7600 handle, the AUD/USD pair recovered the lost ground and is now extending its recovery momentum amid broad based greenback retracement.

Currently trading around 0.7640-45 region, the pair managed to defend and rebound from 0.7585 strong horizontal support. Adding to this, a broad based US Dollar retracement from multi-month tops further helped the pair to surpass Monday's swing high and aim towards mid-0.7600s.

Moving ahead, Fed rate-hike expectations would continue to drive the greenback, while broader market risk-sentiment would also contribute towards movement around the higher-yielding currencies - like Aussie. On the economic data front, the release of Conference Board's Consumer Confidence Index for October will be in focus during early NA session and generate some short-term trading opportunities.

Technical levels to watch

A follow through buying interest above 0.7650 level has the potential to lift the pair further towards 0.7690 region above which the pair seems all set to reclaim 0.7700 handle and head towards its next major hurdle near 0.7720-25 region.

On the downside, renewed weakness below 0.7615-10 immediate support is likely to find support near 0.7585, which if broken decisively would open room for further downslide for the pair in the near-term. Below 0.7585, the pair could immediately slide to 100-day SMA support near 0.7560 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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