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AUD/USD recovery attempts stalling at key resistance

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7340 with a high of 0.7373 and a low of 0.7284.

AUD/USD is up from the lows of below the 0.73 handle on China's stock market sell-off overnight, and has made a full recovery while now up to test the resistance of the 0.7310 rally on yesterday's business. The zone here is congested and despite the weakness in the greenback post the FOMC minutes that were mixed/dovish, the Aussie could have a tough time in cracking the 0.74 handle in the broader bearish trend.

AUD/USD a better performer

AUD/USD has been a better performer of late of ever since the recent change of wording that from the RBA over the price of the Aussie and it is currently making a further attempt at the downtrend. A close above 0.7380 could allow for recovery to the 0.7448 July 21 high and the 0.7500 55 day moving average. However, AUD/USD has spent this past month right above the trend across the lows since Aug 13th and weekly oscillators are crossing higher vs the broader and prominent downtrend.

AUD/USD levels

On a wide range, 0.7600 is a psychological level that leaves the downside exposed on minor recovery attempts and below here remains a play on the short side. "Major support below the 0.7235 July and 0.7218 current August lows can be seen between the long term 61.8% Fibonacci retracement at 0.7184, the 14 year support line at 0.7178 and the base of the two year channel at 0.716," explained Karen Jones, chief analyst at Commerzbank.

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