AUDUSD Poised For Upside Rally As Key Support Weighs


Key Takeaways:

  • AUDUSD forms a pin bar on hourly chart
  • NFP exceeds expectations
  • Key trendline support weighs

The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Monday, dragging the price of AUDUSD to less than 0.7700 following the US Nonfarm Payrolls Release. The technical bias remains slightly bullish due to a Higher High on the daily chart.

Technical Analysis

As of this writing, the pair is being traded near 0.7695. A support can be seen near 0.7685, the lower trendline channel on daily timeframe as demonstrated in the following chart. A break and daily closing below the trendline could incite renewed selling interest, validating a dip towards the 0.7600 support area.

AUDUSD Poised For Upside Rally As Key Support Weighs

On the upside, the pair is expected to face a hurdle near 0.7783, the 23.6% fib level ahead of 0.7800, the psychological number and then 0.7911, the swing high of the last major upside rally. The technical bias will remain bullish as long as the 0.7624 support area is intact.

Nonfarm Payrolls

The US corporations added 295K jobs in February as compared to 239K jobs in the month before, surpassing the average forecast of 240K. Generally speaking, higher nonfarm payrolls reading is considered positive for the economy thus a better than expected actual outcome spurred bullish momentum in the US Dollar Index which tracks the strength of greenback against a basket of six major currencies.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around the 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 trendline support area as described above.

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.

Latest from Forex Analysis

Australian Dollar Weakens amid Inflation News Exchange Rates Consolidate at the Beginning of the Week The US Continues to Trump the Euro Economy on Key Metrics, But What Is Next? NZD/USD Technical Analysis: Bearish Start To News-heavy Week Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily

Latest articles


Brent Crude Oil Makes Sudden Rally As OPEC Countries Mull Low Output

Crude oil is a particularly unusual substance in that it is one of the only consumable commodities that institutions and private individuals widely trade across the spectrum of global markets, and it is a staple component as an energy resource

Forex Analysis

Australian Dollar Weakens amid Inflation News

According to data published today by the Australian Bureau of Statistics, the Consumer Price Index (CPI) value was: actual 3.4%, expected = 3.6%, a month ago = 3.4%, 2 months ago = 4.3%. Data shows Australia's consumer price growth


AAPL Share Price Rises Nearly 1% after Scrapping Electric Vehicle Plans

In 2021, the release of an electric car from Apple was expected in 2025, in 2022, the deadline was shifted to 2026. As it became known yesterday from Bloomberg and WSJ, Apple decided to completely abandon the project. Causes for

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. 65.68% 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.