AUD/USD reverses from important resistance

After once again failing to sustain its strength above 0.7800 level, the AUD/USD pair gave up majority of its yesterday's gains.


AUD/USD could drop to test 0.7700 mark

From current levels, 0.7750 mark seems to provide immediate support. Rejection from 0.7800 handle, representing the upper trend-line resistance of a short-term ascending channel formation on H4 chart, and a subsequent break below 0.7750 mark would suggest extension of the near-term corrective move. Below 0.7750 support, the pair could easily drop towards 0.7720 horizontal support ahead of the ascending channel lower trend-line support near 0.7700 round figure mark.

On the upside, 0.7800 level remains immediate hurdle to be cleared. A clear break-through 0.7800 strong resistance should lift the pair immediate towards 0.7840 region and also opens room for further near-term upward trajectory.