AUD/USD recovers lost ground, now eyeing Monday's multi-month tops

Haresh Menghani FXStreet

The AUD/USD pair reversed RBA minutes-led corrective slide to the 0.7700 handle and is now aiming towards four month highs touched in the previous session.

A fresh wave of greenback selling pressure during mid-European session, with the US Dollar Index extending its bearish slide further below the key 100.00 psychological mark, has been an exclusive driver of the pair's recovery back closer to over 4-month highs touched on Monday.

Despite of Monday's hawkish comments from the FOMC members - Evans and Harker, supporting the need for additional rate-hikes through 2017, the greenback remained on the back-foot.

The prevalent bearish sentiment surrounding the buck assisted the pair to reversed early losses led by RBA minutes, which highlighted the central bank's concern on highly indebted households and raised alarm on build up of risks associated with the housing market.

In absence of any major market moving economic releases, the US Dollar price dynamics would continue to be a key determinant of the pair's movement on Tuesday. Later during NY session, the Kansas Fed President Esther George and Cleveland Fed's Loretta Mester would be looked upon for fresh impetus.

Technical levels to watch

Bulls would be eyeing for a decisive break through multi-month tops resistance near mid-0.7700s, above which the pair seems all set to surpass Nov. 2016 highs resistance near 0.7775-80 region and head towards reclaiming the 0.7800 handle.

On the flip side, retracement back below 0.7725 level now seems to drag the pair below 0.7700 mark towards an intermediate support near 0.7665 region ahead of 0.7630 strong support.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H	Bearish	Neutral	Expanding
4H	Bullish	Overbought	Expanding
1D	Bearish	Neutral	High
1W	Bullish	Neutral	Expanding
Updated Mar 21, 09:00 GMT

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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