AUD/USD Gains Strength amid US Jobless Claims Data

The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Friday, increasing the price of AUDUSD to more than 0.7950 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing upside move.

AUD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7971.  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 0.7985, an immediate horizontal resistance level ahead of 0.8000, the psychological level and then 0.8049, 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.

US Jobless Claims Data

The number of people who filed for unemployment assistance in the U.S. last week fell more than expected, staying close to the lowest level in more than four decades, official data showed on Thursday.

The number of individuals filing for initial jobless benefits in the week ending July 29 decreased by 5,000 to a seasonally adjusted 240,000 from the previous week’s revised total of 245,000, the U.S. Department of Labor said.

Analysts expected jobless claims to fall by 3,000 to 242,000 last week.

The four-week moving average was 241,750, down 2,500 from the previous week. The monthly average is seen as a more accurate gauge of labor trends because it reduces volatility in the week-to-week data.

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.

 

usmanahmed7290@gmail.com'

Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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