Forex Trading: AUDUSD Technical Analysis – Febuary 06, 2020
Today, the Australian Dollar (AUD) lowered itself against the U.S. Dollar (USD) at a price below 0.6800, although it shows the continuous increase in currency during this week’s first three trading days. That may not affect Australia’s currency rate badly as shown in the graph below. The US Employment Change release yesterday is considered to be responsible for the decline in AUDUSD, as it boosted its index by 100 figures and thus reported itself at 291 K. As far as the technical bias is considered. it might stay bearish, as the lower low wave printed in the graph in the last downside move.
AUD/USD: Technical Analysis
Today, AUDUSD updated at 0.6744 as shown in the attached graph, its disappointing to say that the price at this stage is supported by the few levels of supports, which are assumed to be another hope, other than good news that takes the price upwards. The trendline at a distance from the price is 0.6677, ahead of the psychological number at 0.6670, followed by the major horizontal support at 0.6668.
Whereas on the opposite side, the pair’s price found to restrict itself under the pressure of the resistance levels, at 0.6716, the 23.6% resistance stands above the price, next to it, there is the trendline of 0.6803, and then major horizontal resistance stands at 0.6854.
US Employment Change
The Employment Change published by Automatic Data Processing, Inc, Inc. is a summary of the change in the number of people in the United States working. Generally speaking, an increase in this indicator has positive effects on consumer spending and stimulates economic growth. So traditionally a high reading is seen as positive, or bullish for the USD.
Trying to prevent trading at this stage would be a wise decision since the above graph shows the negative perception of AUDUSD with limited support levels.