The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Friday, increasing the price of AUDUSD to more than 0.7550 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.
Technical Analysis
As of this writing, the pair is being traded around 0.7589. A support can be noted around 0.7470, an immediate horizontal support ahead of 0.7400, the psychological number and then 0.7389, another trendline support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.7615, an immediate trendline resistance level ahead of 0.7700, the psychological level and then 0.7749, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.7389 support area is intact.
ADP Employment Change
The latest ADP data recorded an increase in private payrolls of 158,000 for June which was significantly below consensus estimates of 185,000 for the month. The May increase was also revised down to 230,000 from the original print of 253,000 for the month. According to ADP, there was an increase in employment of 17,000 for small companies, 91,000 for mid-sized companies and 50,000 for large companies and there will be some concerns that hiring at small companies appears to have slowed. There was no change in the goods-producing sector as construction jobs declined slightly on the month. The services sector added 158,000 jobs for June with information the only sector not showing an increase.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
