AUD/USD Eyes 0.8900 As Bulls Remain In Control

FXOpen

The Aussie extended upside movement against the greenback on Thursday taking the price of the pair to more than 0.8750 ahead of the US jobless claims data.

As of this writing the pair is being traded around 0.8753. Today the pair breached an important resistance level at 0.8760 but even then is being dragged down by the bears. Currently, the pair is struggling around 0.8755 to take the price higher, testing the resistance at 0.8760. If the pair succeeds in breaching this resistance, it will move forward to test the next critical resistance area around 0.8800, the psychological number and 50-Day SMA. The said level stalled the bullish wave on many events during the last month.

1

On the downside, the pair may find the support around 0.8680, the psychological number and 38.2% Fib level. The next support level lies subsequently around 0.8626 and 0.8539.

The overall bias is bearish because of lower highs on the daily chart. However, the market anticipates a bullish breakout on a daily close above the trend line resistance at 0.8765.

Consumer Inflation Expectation

The consumer inflation expectations remains 4.1% for this October as opposed to 3.4% of the month before. Released by the Melbourne Institute, the high reading is considered positive for the Aussie Dollar and vice versa, thus a better than previous figure spurred bullish momentum in the price of AUD/USD.

Initial Jobless Claims

The initial jobless claims remained 280K for the month of October as compared to 278K for the month before, average forecast of different analysts says. As an indicator of strength in the labor market, a high reading is considered bearish for the US dollar. Thus a worse than expected figure might produce buying pressure in the price of AUD/USD.

Trade idea

Considering the overall technical and fundamental analysis, selling the pair around the 0.8900 handle could be a good option if the pair leaves a bearish pin bar or bearish engulfing candle on the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Shares

Coca-Cola Company (KO) Shares Trade Near All-Time High

Stock market charts indicate that from the start of last week’s trading through to its close:

→ The S&P 500 Index (US SPX 500 mini on FXOpen) declined by approximately 3%;
→ Pepsico (PEP) shares dropped by more than

Cryptocurrencies

BTC/USD Analysis: Bulls on the Offensive

In our previous analysis of Bitcoin’s price (14 April), we:

→ constructed a long-term ascending channel (marked with blue lines);

→ highlighted resistance level R, suggesting that the bulls were seizing the initiative in an attempt to pave the way for

Commodities

Market Analysis: Gold Extends Record Run, WTI Crude Oil Rebound in Tandem

Gold price started a fresh surge above the $3,250 resistance level. WTI Crude oil prices climbed higher above $60.00 and might extend gains.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today

· Gold price started a

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.