The AUDUSD pair met with some fresh supply on Tuesday and eroded a major part of gains recorded in the previous session. Will the pair be able to find any buying interest at lower levels? What does the 28 August AUDUSD Technical Analysis show?
28 August, OctaFX – The pair continued with its struggle to make it through an immediate supply zone near mid-0.7300s, with a modest US Dollar rebound exerting some renewed selling pressure through the Asian session on Tuesday.
AUDUSD Fundamental Highlights
Adding to this, a sudden fall in copper prices further weighed on the commodity-linked Australian Dollar and eventually exerted some additional downward pressure on the major.
Meanwhile, a positive trade-related development, wherein the US and Mexico agreed to overhaul the North American Free Trade Agreement (NAFTA), eased global trade tensions and boosted investors’ sentiment, albeit did little to lend any support to the perceived riskier currencies – like the Aussie.
It would now be interesting to see if the pair is able to find any buying interest at lower levels or the current pull-back marks the resumption of the prior depreciating move, against the backdrop repeated failures ahead of the 50-day SMA immediate strong hurdle and amid absent market moving economic releases.
28 August AUDUSD Technical Analysis
Immediate support is pegged near the 0.7310-0.7300 region, below which the pair is likely to head back towards retesting the 0.7240-35 strong horizontal support.
On the flip side, sustained move beyond mid-0.7300s is likely to confront resistance near the 0.7375 region (50-day SMA), which if cleared is likely to accelerate the up-move beyond the 0.7400 handle towards the next major hurdle near the 0.7430-40 supply zone.
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