AUDUSD Upside Bias Stays Contained at Mid 0.7600, Rallying US Bond Yields Caps the Pair

AUDUSD Price Analysis – February 4

The AUDUSD pair keep gains while its upside bias stays contained below the key hurdle at mid 0.7600 level. Signs of progress on additional US stimulus measures pushed the yield on the benchmark 10-year government bond to a near 10-month high touched in January with a lid on any meaningful upside for the AUDUSD.

Key Levels
Resistance Levels: 0.7980, 0.7800, 0.7725
Support Levels: 0.7557, 0.7461, 0.7414
AUDUSD Long term Trend: Ranging
The Australian dollar rebound back towards mid 0.7600, posting modest gains in a largely lackluster session. After its rebound, the pair drops to 0.7614 in the latest pullback from the intraday high of 0.7647 during early Thursday. In doing so, the Aussie pair steps back from the key resistance, previous support, comprising multiple levels marked since the mid-December 2020.

Trading sustainably beyond the ascending trendline will encourage a bullish scenario and prove that the bounce may hold. The attention may return to the 0.7820 high again. On the other hand, a breach of the 0.7600 marks would extend the pullback from 0.7763 Jan 27 high to a retracement from 1.1079 (high) towards 0.5506 (2020 low) at 0.7557.
AUDUSD Short term Trend: Ranging
AUDUSD’s correction from the 0.7800 regions is still in progress. A steeper plunge could be seen to 38.2% retracement of 0.7000 to 0.7800 at 0.7557. Strong support is expected there to bring rebound. On the upside, the break of 0.7725 minor resistance will argue that the correction has been completed.

The intraday bias will be turned back to the upside for retesting 0.7819 high. Further advances are still under consideration as long as the 0.7557 support level stays intact. A breach of 0.7557 level may target the 0.7414 level in subsequent sessions.

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