AUD/USD fails to hold above 0.7400

The Australian dollar managed to extend its bounce versus the greenback into a second day on Tuesday, after hitting 5-month lows the previous day.

AUD/USD has recovered around a hundred pips from yesterday’s low of 0.7310 as the buck corrects lower, but the upside remained capped by a high of 0.7413. At time of writing, the pair is trading at 0.7385, still up 0.30% on the day.

Valeria Bednarik, chief analyst at FXStreet noted that the short term picture shows that the upward momentum faded. “Overall, the risk is towards the downside, with scope to test the 0.7250 region on a break below 0.7330 a strong Fibonacci support,” she said

AUD/USD levels to consider

In terms of technical levels, next resistances could be found at 0.7417 (Nov 18 high), 0.7488 (10-day SMA) and 0.7500 (psychological level/Nov 17 high). On the other hand, supports are seen at 0.7330 (Nov 18 low), 0.7310 (Nov 21 low) and 0.7285 (Jun 16 low).

To learn more about this topic, check our video analysis:

AUDUSD from Tip TV Productions on Vimeo.