AUD/USD retreats to 0.6820 ahead of US employment and housing data

The Aussie trims gains after rejection at 0.6870.
US Employment and housing data might give some support to the USD.
AUD/USD will face a stronger bearish pressure below 0.6820.
 

The Aussie rally has found some resistance at 0.6870 multi-month highs before retreating to 0.6825 during Thursday’s European trading session. The broader, trend, however, remains positive with downside attempts seen as good entry opportunities for buyers.

Later today the US Jobless claims are expected to have increased to 210K from 205K in the previous week. Shortly afterward, US Pending Home Sales are expected to have increased 1% in November, following a 1.5% decline in October.

These figures might provide some support for the US Dollar, which is trying to trim some losses. The unexpectedly dovish message conveyed by the US Federal Reserve last week has boosted bets for rate cuts in early 2024, crushing the USD across the board.

AUD/USD technical analysis

Technical indicators remain positive although the ever-narrowing trading range of the pair, which results in an upward wedge pattern, and the overbought levels in the daily chart suggests the possibility of a deeper correction.

The pair is now testing trendline support at 0.6820. Below here, bearish pressure would increase with the next targets at 0.6775 and 0.6720. Resistances are 0.6870 and the June and July peaks, at 0.6895.

AID/USD 4-Hour Chart

Technical levels to watch