AUD/USD looks set for bearish breakout through rising wedge

FXOpen

Australian Dollar / US Dollar (AUD/USD) continued the downside movement on Wednesday ahead of major employment reports which are scheduled for release tomorrow (on Thursday). The pair is poised for the downside breakout through the rising wedge formation on the daily chart.

As of this writing, the pair is being traded around 0.8963. Resistance may be noted around 0.9073 which is the 38.2% fibo level before 0.9121 that is the trendline resistance. A daily close above the channel resistance could expose more upside rallies targeting 0.9200.

audusd.ecndaily

On the downside, support may be noted around 0.8954 that is the lower trendline support before 0.8914 that is the 23.6% fibo level support. A break and daily close below 0.8914 might extend the downside movement up to 0.8660 that is the low of the previous downside wave.

Tomorrow Australia’s statistic department will release the jobless rate as well as employment change reports According to the forecast of different economists, the jobless rate remained stable at 6% in February as compared to the same rate in January. Likewise, the number of employed people rose to 18,000 in the last month compared with 3700 decrease in January. The employment reports are considered very significant because they play crucial role in the monetary policy of the Reserve Bank of Australia (RBA).

Next week the RBA is going to release the minutes from the March monetary policy meeting. The central bank had kept the benchmark interest rate unchanged in March amid concerns about the rising unemployment in the country. The central bank predicted in the policy statement that the jobless rate could hit new highs in near future; the bank also looked concerned about the rising Aussie Dollar against the greenback. Dovish minutes could accelerate the bearish momentum in Australian Dollar and vice versa.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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.

Latest from Forex Analysis

Market Analysis: US Currency Continues to Grow Ahead of GDP Data Release Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

Latest articles

Financial Market News

US Government Shutdown: Assessing Economic Impact and Recession Risks

The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid

Indices

S&P 500 Analysis: Price Reaches The Edge of Abyss

Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached

Cryptocurrencies

Bitcoin Cash Analysis: Promising Resistance Breakout

Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of

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.