The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Thursday, dragging the price of AUDUSD to less than 0.7500 before inching higher moderately on Friday during the Asian session. The technical bias remains bullish because of a Higher High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 0.7528. A support may be noted near 0.7491, the intraday low of yesterday ahead of 0.7400, the psychological number and then 0.7367, a major horizontal support as demonstrated in the following daily chart.
On the upside, the pair is likely to face a hurdle near 0.7637, the intraday high of yesterday ahead of 0.7722, the swing high of the last major upside rally and then 0.7800, the psychological number. The technical bias will remain bearish as long as the 0.7414 support area is intact which is the swing low of the last major downside move.
US Jobless Claims
The number of Americans filing for unemployment benefits fell more than expected last week, suggesting the labor market continued to strengthen despite tepid economic growth. Initial claims for state unemployment benefits declined 9,000 to a seasonally adjusted 267,000 for the week ended April 2, the Labor Department said on Thursday. Economists polled by Reuters had forecast claims slipping to 270,000 in the latest week. Jobless claims have now been below 300,000, a threshold associated with healthy labor market conditions, for 57 weeks, the longest stretch since 1973.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair near 0.7367 appears to be a good strategy in short to medium term if we get a valid bullish reversal candle near that area.
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