AUDUSD Leaves a Giant Bearish Engulfing Candle Amid US Job Data

The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Friday, increasing the price of AUDUSD to more than 0.7625 after leaving a giant bearish engulfing candle on the daily chart amid release of US job data. 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 near 0.7630. A support can be noted around 0.7600, the psychological number ahead of 0.7558, the trendline support and then 0.7500-0.7505, the confluence of horizontal support as well as psychological number as demonstrated in the given below daily chart.

On the upside, the pair is expected to face a hurdle near 0.7700, the horizontal resistance as well as psychological number and then 0.7734, the intraday high of yesterday. A break above the 0.7734 resistance area could incite renewed buying interest, validating a move towards the 0.7800.

US Jobless Claims

Filings for U.S. unemployment benefits rose last week by the most since July, after spending several weeks at or near a four-decade low. Jobless claims increased by 13,000 to 260,000 in the period ended Oct. 15, a Labor Department report showed Thursday in Washington. The median forecast in a Bloomberg survey of economists called for 250,000. Continuing claims also rose, though the four-week average was the lowest since 2000. Estimates in the experts’ survey ranged from 235,000 to 300,000. The Labor Department revised the prior week’s reading to 247,000 from an initially reported 246,000.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy in short to medium term as long as 0.7433 resistance holds off.'
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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