AUD/USD catches a foothold after being rejected from the 0.79 handle

• AUD/USD droops following a bounce from 0.7825.
• Fed chairman Powell likely to influence USD bias during testimony.

AUD/USD is drifting lower in the overnight session, dropping below the 0.7850 level.

Monday turned out to be a pump-and-dump day, with the Aussie getting dragged up the charts by Yen buying driving the US Dollar lower, but the AUD/USD pair retreated from just below the 0.7900 handle, bouncing off support at 0.7825.

The AUD has little influential data slated for this week and market sentiment is still driving the main pairs, but today will see Fed chairman Jerome Powell giving his congressional testimony at 15:00 GMT, and his words may influence Greenback bias heading into the middle of the week.

AUD/USD Technicals

With the Australian economy stuck in idle, the pair has begun to trade near the 200-day SMA, with a lack of direction keeping the Aussie beneath the 34 EMA. H4 charts show a lateral triangle still holding, while support rests at the 0.7800 handle and 0.7770, with resistance at 0.7890 and 0.7990.