Aussie Dollar Remains Vulnerable as Sellers Gain Strength

The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Friday, increasing the price of AUDUSD to more than 0.7900 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 0.7940. A hurdle can be noted near 0.8124, an immediate horizontal resistance level ahead of 0.8200, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given below chart.

On the downside, a support can be noted around 0.7900, an immediate horizontal support ahead of 0.7895, the psychological number and then 0.7800, another trendline support as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.7800 support area is intact.

US Jobless Claims

The number of Americans filing for unemployment benefits unexpectedly fell last week, but the near-term outlook for the labor market was muddied by the continuing impact of Hurricanes Harvey and Irma. Other data on Thursday showed manufacturing activity in the mid-Atlantic region accelerated in September amid a surge in new orders. But hiring by factories slowed and employees worked fewer hours this month compared to August. Initial claims for state unemployment benefits declined 23,000 to a seasonally adjusted 259,000 for the week ended Sept. 16, the Labor Department said. A Labor Department official said Harvey and Irma affected claims for Texas and Florida.

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.

More Posts

By with No Comments 0

Related Posts

No posts were found for display