AUD/USD exhausts upside momentum, turns back to 0.7700 handle

A fresh bout of US Dollar buying interest seems to have emerged during early European session on Thursday, dragging the AUD/USD pair back around 0.7700 handle.

The pair once again has faded a bullish spike to 0.9755 region, confirming a strong supply at higher levels and possible exhaustion of the ongoing bullish momentum.

Moreover, a rebound in the greenback, as measured by the overall US Dollar index, is also exerting some selling pressure and restricting further upside for the pair.

Traders now turn their focus towards US weekly jobless claims and import price data, later during NA session, in order to grab some short-term momentum.

Technical levels to watch

A follow through weakness below 0.7700 handle seems to drag the pair immediately to 0.7670 horizontal support before extending its downslide further towards 0.7630-25 strong support. On the flip side, a sustained strength above 0.7715-20 area should seems to assist the pair back towards 0.7750-55 strong resistance, above which the pair seems all set to extend its near-term bullish traction back towards 0.7800 round figure mark.