AUDUSD Looks Set For Major Bullish Reversal

FXOpen

The Australian Dollar (AUD) extended upside movement against the US Dollar (USD) on Friday, increasing the price of AUDUSD to more than 0.7580 following the release of worse than expected nonfarm payrolls release yesterday. The technical bias however remains bearish due to a Lower Low in the ongoing wave on hourly chart.

Technical Analysis

As of this writing, the pair is being traded around 0.7590. A support can be noted near 0.7565, the low of the yesterday 0.7531, the low of 2015 and then 0.7500, the psychological level.

AUDUSD Looks Set For Major Bullish Reversal

On the upside, the pair is expected to face a hurdle near 0.7605, the 23.6% fib level ahead of 0.7651, the 50% fib level and then 0.7737, the high of the last major wave as demonstrated in the above chart. The technical bias will also remain bearish as long as the 0.7737 resistance area is intact.

US Job Data

The US Corporations added 223K new jobs in June as compared to 254K (revised) in the month before, down beating the average forecast of 230K, a government report said yesterday. Generally speaking, higher Nonfarm Payrolls figure is seen as positive for the US Economy as well as US Dollar and vice versa thus a worse than expected actual outcome spurred bullish momentum in the price of AUDUSD and the same trend is likely to continue in the near future.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing below the 0.7500 support area as described above.

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 Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher EUR/USD Analysis: Key Support Zone Resists Selling Pressure USD/JPY Analysis: Rate Reaches Maximum of the Year Market Analysis: EUR/USD, GBP/USD, and USD/JPY

Latest articles

Forex Analysis

Market Analysis: US Dollar On the Rise Despite Weak PMI Data

EUR/USDThe euro fell against the US dollar on Friday as economic data showed a contraction in economic activity, which could prompt European Central Bank hawks to soften their policy stance. Preliminary data indicates a contraction in economic activity in

Financial Market News

Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar

The US, Japan and the UK may have kept interest rates on hold last week, but with the Federal Reserve indicating that rates will stay higher for longer, there is turmoil in the equity markets. The NASDAQ 100 fell 500

Financial Market News
Indices

Financial Markets Waking Up after a Turbulent Week: Important News

The main event of last week was information from the Fed. Jerome Powell once again demonstrated his determination to maintain a tough political stance, which caused: → increase in bond yields. Yields on 10-year securities reached their highest since 2009; → the

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.