AUD/USD posts modest losses below 0.7740, looks to snap three-day winning streak

AUD/USD is edging lower in the American session.
On a weekly basis, AUD/USD is up more than 100 pips.
US Dollar Index struggles to stage a meaningful rebound.

Eren Sengezer FXStreet

The AUD/USD pair rose to 0.7760 earlier in the day but lost its traction during the American trading hours. As of writing, the pair was down 0.2% on a daily basis at 0.7745.

In the absence of significant fundamental drivers, the pair seems to be making a technical correction as investors may be looking to book their profits following a three-day rally.

Earlier in the day, the data published by the University of Michigan showed that the Consumer Sentiment Index improved modestly to 86.5 in April's preliminary reading from 84.9 in March. Although this print came in weaker than the market expectation of 89.6, it failed to trigger a noticeable market reaction.

Meanwhile, the US Dollar Index is staying in a relatively right range a little above 91.50, allowing AUD/USD to limit its losses ahead of the weekend.

AUD/USD near-term outlook

UOB Group analysts think that AUD/USD could re-test 0.7785 in the next 1-3 weeks. "While conditions remain overbought and momentum is beginning to wane, there is scope for AUD to make another push higher towards 0.7785," analysts said. "Looking ahead, the next resistance is at 0.7820. A break of 0.7670 (‘strong support’ level was at 0.7645 yesterday) would indicate that the upside risk has dissipated.”

Additional levels to watch for

AUD/USD

Overview
Today last price	0.7735
Today Daily Change	-0.0017
Today Daily Change %	-0.22
Today daily open	0.7752

Trends
Daily SMA20	0.7645
Daily SMA50	0.7721
Daily SMA100	0.7668
Daily SMA200	0.7425

Levels
Previous Daily High	0.7762
Previous Daily Low	0.7705
Previous Weekly High	0.7678
Previous Weekly Low	0.7588
Previous Monthly High	0.785
Previous Monthly Low	0.7562
Daily Fibonacci 38.2%	0.774
Daily Fibonacci 61.8%	0.7727
Daily Pivot Point S1	0.7718
Daily Pivot Point S2	0.7683
Daily Pivot Point S3	0.7661
Daily Pivot Point R1	0.7775
Daily Pivot Point R2	0.7797
Daily Pivot Point R3	0.7832

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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