AUD/USD rebounding from the 0.77 handle amid weaker greenback

• A break of 0.7750 could lead to a test of the 0.78 handle.
• Reserve Bank of Australia’s Kent is scheduled to speak at 00.45 GMT. 

The AUD/USD is trading at around 0.7747 up 0.57% so far as the negative sentiment on the greenback persists from last week ‘dovish rate hike’ on the FOMC´s day. The US Dollar Index is now flirting with the 80.00 mark.

Fed's Quarles speech is scheduled to speak at 23.10 GMT while RBA’s Governor Kent has its speech scheduled at 00.45 GMT. 
 
On Monday, the US equity market recovered from last week´s sell-off which it what was the worst trading week recorded since January 2016. Today, Bonds were well-bid and the USD kept selling off as fears over an escalation in the US-China trade war cooled down. Traders are starting to focus on the quarter-end funding pressures and the impending Easter holiday.

AUD/USD weekly chart

The AUD/USD is in a bull wedge flag with traders supporting the market at the 0.7700 handle. the market is currently testing the 50-period simple moving average and is now trapped between the 100 and 200-period simple moving average. Bulls want to break out above last week's high and the 0.7800 handle, but they have the 200 WMA to overcome; on the flip side, the bears want to break below last week’s low below the 0.77 handle. If the bears manage to break below 0.7700, they will have to overcome the 100-period simple moving average located  nearby at 0.7630. 

AUD/USD daily chart

Bulls are challenging yesterday’s high. A clear break of the 0.78 handle would open the gate to the next resistance seen at the 0.79 handle. 

AUD/USD 1-hour chart

The AUD/USD is testing the 200-period simple moving average and the 0.7750 level which was a supply level in recent sessions. A clear break above 0.7750 could open the doors to the 0.7800 level. Alternatively, a failure at 0.7745 might see the AUD/USD trading back into the 0.7720 territory with the 100 and 200-period simple moving averages.