AUDUSD Poised for More Losses amid NFP Release

The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Friday, decreasing the price of AUDUSD to less 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 0.7949.  A support can be noted around 0.7879, 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.

audusddaily

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

The number of people who filed for unemployment assistance in the U.S. last week rose less than expected, according to official data released on Thursday. The number of individuals filing for initial jobless benefits in the week ending August 26 increased by 1,000 to a seasonally adjusted 236,000 the Labor Department said.

Analysts had expected claims to rise to 237,000 last week. Figures for the prior week were revised to show 1,000 more applications received than previously reported.

The four-week moving average fell by 1,300 to 236,750 last 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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