AUD/USD reverse daily losses, hits fresh session high at 0.7625

Having posted a daily low at 0.7584, the AUD/USD pair has managed to recover all of its lost ground and is currently trading at session high, around 0.7625 nearly unchanged from Friday's closing level.

Currently trading at 0.7620, the pair is benefitting from a broad based retracement in the US Dollar following two-days of strong gains on reviving hope of an eventual Fed rate-hike action after last week's hawkish rhetoric by FOMC officials. Markets, however, remained unconvinced that the US central bank will go ahead and raise interest rates in the near-term, with the CME group's Fed Fund futures pricing-in only 18% and 23% probability of such an action in September and November respectively.

How strong has the move been?

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. Currently RSI is at 65.58, up from the last hourly print at 48.81, with ADX at 18.58, down from its previous close at 22.99.

Daily RSI sits at 52.46, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.7639, down from the last close at 0.7675 and declining. Over the past 20 days, the exponential average closing price is 0.7624, and ranging.

What price levels and patterns have to be considered?

Immediate resistance ahead is pegged at 0.7640 (Daily Classic PP), 0.7659 (Hourly 100 SMA) and 0.7659 (Weekly Classic PP). Next support to the downside can be found at 0.7610 (Hourly 20 EMA), 0.7603 (Daily Open), 0.7599 (Yesterday's Low) and 0.7587 (Daily Classic S1).