AUD/USD: bulls losing grip on relief-Brexit-rally sentiment

AUD/USD is currently trading below the 20 sma on the 1hr sticks that is located at 0.7622 after a series of offers overnight from initial supply located at the highs of 0.7657.

AUD/USD rallied from 0.7541 to aforementioned highs despite the dollar performing strongly elsewhere on the Brexit UK parliament news, but that seems to have been a shortlived bid. The Aussie was otherwise supported on commodity prices and risk sentiment returning to markets with a spike in copper reaching 2.2235. However, gold took a hit, dropping below the 1hr 200 sma at $1350 and down to lows of $1330.20 before stabilizing. 

Meanwhile, the outlook for Australia's economy and GDP is supported by a solid mining activity currently, as explained by analysts at NAB. Elsewhere, the US dollar remains strong despite a slight return of risk sentiment on Brexit drivers, but the ice is thin and investors are treading with caution. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that technically, and according to the 4 hours chart, "the pair can consolidate some, and even post a moderated decline towards the 0.7600 region without losing its upward potential, as the RSI indicator turned higher around overbought levels, whilst the 20 SMA advanced further below the current level, now standing around 0.7555, providing a strong dynamic support."