- Bank of Canada first major central bank to make tangible move to tighten policy
- AUD/USD rises overnight but struggles against lingering level of resistance
AUD/USD is off the lows, flirting with the 0.7750 barrier amid falling Treasury yields, which continue to make the aussie a more attractive higher-yielding asset. Despite the overnight move higher, AUD/USD bulls continue to struggle to decisively overcome the 0.7750 level, indicated by the red horizontal line on the chart below.
The technical outlook for AUD/USD rates appears relatively mixed, as price carves out a possible Head and Shoulders reversal pattern below a key range at 0.7800 round figure mark.
From a technical perspective, the recent swing low 0.7730 appears to be providing firm support to the downside, however. Price may continue to range between these two levels. A break on either side could see follow-through given the pair's multi-day consolidation.
A firm break above that resistance zone is needed to retest the daily highs at 0.7765. Further up, the 0.7800 round number could be probed. However, with the Relative Strength Index (RSI) back under 50.00, the upside attempts limited at the moment.Therefore, the bear could aim at the at 0.770 on a renewed selling wave, below which the 0.7700 mark would be eyed.
The material has been provided by InstaForex Company - www.instaforex.com