AUD/USD well offered for third straight session

The AUD/USD pair extended near-term bearish trajectory and maintained its offered tone for the third straight session amid broad based greenback strength.

The US Dollar extended overnight gains led by Fed Chair Janet Yellen's testimony, which reinforced market expectations for a December rate-hike action and dragged the pair to the lowest level since late June. The pair, however, has managed to bounce-off multi-month lows and is currently trading around 0.7390-95 band. 

Following a break below the very important 200-day SMA, coinciding with 0.7500 psychological mark, bears remained in full control and the pair lost over 350-pips from post-US presidential election swing high. The pair now seems all set to post second consecutive week of steep losses from nearly 7-month high level touched during the early part of the month.

Later during the day, speeches from various FOMC members, including James Bullard, William Dudley and Esther George, would be now looked upon for the Fed's next monetary policy move and should provide fresh impetus for the pair. 

Technical levels to watch

With RSI nearing oversold conditions, the pair seems more likely to continue finding some support near 0.7370 region, which if broken decisively is likely to accelerate the slide towards 0.7330 horizontal support before the pair eventually drops to testing 0.7300 round figure mark.

On the upside, recovery beyond 0.7415-20 resistance (session peak) might now confront resistance near 0.7440-45 area above which the recovery could get extended but is likely to be capped at 0.7500 psychological mark.