AUD/USD back below 0.7600 handle, upside capped at 50-DMA

After failing to build on to disappointing NFP-led recovery gains, the AUD/USD on Monday faced rejection at 50-day SMA and is now extending its slide further below 0.7600 handle.

Currently trading at session lows around 0.7585 level, the pair reversed from weekly bullish gap opening at an important support break point amid renewed greenback buying interest. Post-NFP comments from Cleveland Fed President Loretta Mester reinforced market expectations that the Fed would eventually move and raise interest-rates before the end of this year and is supportive for the bullish sentiment surrounding the US Dollar. 

From technical perspective, sustained weakness below 50-day SMA has turned the pair vulnerable to extend its near-term downslide and hence, any bounce-off lower levels might now be perceived by traders as an opportunity to initiate fresh short-positions.

Technical levels to watch

A follow through selling pressure below 0.7585 immediate support is likely to accelerate the slide immediately towards 0.7550 before the pair aims towards testing 100-day SMA support near 0.7520 region. 

On the upside, 50-day SMA near 0.7610 region now seems to have emerged as immediate strong resistance, which if cleared seems to boost the pair immediately towards 0.7640 resistance ahead of its next major hurdle near 0.7675 area.