AUD/USD: Sustained move beyond mid-0.7700s to confirm a near-term bullish bias

The AUD/USD pair witnessed a modest pullback from two-week tops and ended in the red, snapping three consecutive days of the winning streak on Wednesday. The aussie is currently trading around the 0.7750 level and is set to continue its advance on a break above the 0.7755 mark, FXStreet’s Haresh Menghani reports.

Key quotes

“In the absence of any major market-moving economic releases, the US bond yields will continue to play a key role in influencing the USD price dynamics. Apart from this, traders might further take cues from the broader market risk sentiment to grab some meaningful opportunities.”

“It is prudent to wait for a sustained move beyond the overnight swing highs, around the 0.7755 region, before positioning for any further appreciating move. The aussie might then aim to reclaim the 0.7800 round-figure mark before eventually darting to YTD tops, around the 0.7820 region touched on January 6.”

“The trend-line resistance breakpoint, currently around the 0.7715 region, might act as immediate support. This is closely followed by the 0.7700 round-figure mark, which if broken decisively might prompt some technical selling and accelerate the slide towards the 0.7660 support zone. Some follow-through selling will negate prospects for any further positive move and turn the pair vulnerable to retest sub-0.7600 levels.”