AUD/USD once again fails to sustain its strength above 0.7700 handle

The AUD/USD pair trimmed some of its better-than-expected employment growth led strong gains to 0.7723 and is currently trading back below 0.7700 handle around 0.7680 region.

Despite of a well-offered tone around the greenback, the pair has once again failed to build on to its early gains beyond 0.7700 handle. The pair's inability to sustain its move beyond 0.7700 mark clearly suggest strong supply at higher levels, increasing the possibilities of a near-term corrective move.

However, disappointing US economic data, due in a short while from now could provide the required momentum and help the pair to resume its upward trajectory.

Technical levels to watch

On the downside, 0.7650 level seems to act as immediate support, which if broken would negate possibilities of any further up-move and turn the pair vulnerable to head back towards Wednesday's low support near 0.7600 handle. A follow through selling pressure now seems to turn the pair vulnerable to continue drifting lower towards retesting its next major support near 0.7500 psychological mark.

On the flip side, momentum back above 0.7700 level, and a subsequent strength above 0.7720-25 (session high) should now boost the pair back towards recent swing high resistance near 0.7750 region, above which a fresh leg of up-move has the potential to lift the pair towards April high resistance near 0.7800 handle.