AUD/USD struggling to gain follow through traction, set for a corrective slide?

The AUD/USD pair caught some fresh bids near 0.7700 handle and jumped to fresh session peak, turning positive for the third consecutive session. 

Comments from RBA Governor Phillip Lowe dampened expectations of further interest rate cut action by the central bank and extended support to the major. Moreover, positive sentiment surrounding commodity space, especially copper prices, further boosted demand for commodity-linked currencies, including the Aussie. 

Meanwhile, continuous slide in the US Treasury bond yields undermined the greenback demand and drove some additional flows towards higher-yielding currencies and collaborated to the pair's up-move on Friday. 

The up-move, however, lacked conviction as bulls seemed exhausted, against the backdrop of overnight retracement from multi-month tops. Moreover, the pair has failed to attract any substantial follow through buying interest despite of broad based US Dollar sell-off, which points towards higher possibilities of some corrective slide ahead of the weekend.

The pair retreated from highs and is currently trading around 0.7710-15 region. Later during NA session, the release of new home sales and revised UoM Consumer Sentiment index could trigger the expected profit-taking move. 

Technical levels to watch

From current levels, multi-month highs near 0.7735-40 region remains immediate hurdle, which if cleared decisively has the potential to lift the pair towards 0.7770-75 region (Nov. monthly highs), en-route 0.7800 round figure mark.

On the flip side, weakness below 0.7700 round figure mark could get extended towards a short-term ascending trend-line support, currently near 0.7680-75 region, which if broken convincingly would negate any near-term bullish bias and accelerate the slide towards 0.7640 horizontal support before the pair eventually drops to 0.7610 strong support.