Last week saw AUDUSD trading inside a very narrow trading range between 0.7690 resistance level and support level 0.7600. This price congestion has sent the stochastic indicator in oversold territory, so it’s possible to see one more attempt to break above 0.7696 last swing high before the sellers to show up. A daily break and close above 0.7696 will put the focus on the November swing high 0.7777 and we can even see a full scale break above last year’s high 0.7833. To the downside, it’s also important to get a break and a daily close below the round number 0.7600 for confirmation of the bearish case.
A break below 0.7600 will open up the door for a retest of the big psychological number 0.7500 followed by intraday support level 0.7450 where AUD/USD can see at least a pause if not a small bounce. The Australian economic calendar will bring on Thursday the unemployment figures. The Australian unemployment rate edged higher to 5.8%, although the employment rate climbed. The RBA still sees uncertainty over the labor market and many financial analysts see a slow progress in the employment figures moving forward.
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AUDUSD Weekly Forex Forecast – 13th to 17th Feb 2017 – Bearish