AUD/USD falls to test April lows

AUD/USD weakened during the American session and dropped to 0.7476, hitting a fresh daily low. The pair is trading at 0.7477, marginally above April lows that lie at 0.7473. The Aussie is headed toward the lowest daily close in almost three months. 

It moved all day with a bearish bias and it has erased the ground it gained yesterday during the American session. The recovery was short-lived and the pair again is under pressure as the US dollar shows strength in the market amid geopolitical concerns. 

Levels to watch 

AUD/USD still hold above 0.7470/75, that has become a relevant short-term support. During the last three days, it moved between 0.7475 and 0.7515. A break of the mentioned support could lead to a decline to 0.7440 (Sep 2016 lows), that is the next strong support. 

As seen, price action moves have been limited during the week and market is likely to continue that way. Liquidity is expected to fall sharply tomorrow and even more on Friday because of holidays. 

To the upside, if AUD/USD manages to rise above 0.7510, it could remove some pressure and would clear the way to a more sustain recovery; above that level resistance might lie at 0.7555 and 0.7605 (20-day moving average).