AUDUSD pair rose Aussie dollar is being guided by oil price action in Asia. Slightly upbeat comments from Algeria’s Energy Minister pushed oil higher by 1%. Aussie followed suit and added 20 odds pips to clock session highs around 0.7630.
However, prospects of oil output freeze are still very low, which made sure oil trimmed gains. Aussie too surrendered gains to trade around 0.7610. The empty Australian economic calendar means the spot is at the mercy of overall demand for US dollars and action in oil and gold.
Current development argues that the choppy rise from 0.7144 is possibly not completed. But even though break of 0.7754 cannot be ruled out, upside should be limited below 0.7833 to bring near term reversal. On the downside, 0.7554 minor support will turn bias to the downside for 0.7441 support first.
In the bigger picture, AUDUSD is staying inside long term falling channel and it’s likely that the down trend from 1.1079 is still in progress. Break of 0.6826 low will confirm this bearish case and target 61.8% projection of 0.9504 to 0.6826 from 0.7833 at 0.6178 next. We’ll be looking for bottoming sign again as it approaches 0.6008 key support level. Meanwhile, sustained break of 0.7833 resistance will now be a strong sign of medium term reversal.