Forex
AUDUSD Ahead of Non-Farm Payroll
- AUDUSD Ahead of Non-Farm Payroll
As projected in the previous analysis, 0.7784 support level was breached today. However, price rebounded from a 3-month low of 0.7742 but still trading below 0.7784 levels.
Therefore, we remain bearish on AUDUSD and expect a sustained break of 0.7784 targets to open up 0.7621 support level in days to come. The Australian dollar is overpriced, and as stated by the Governor of Reserve Bank of Australia, Philip Lowe, high foreign exchange rates would hurt economic progress. Excerpt from an earlier analysis.
While the Australian dollar remained weak, a strong or better than expected job data is needed to sustain downward trend and open up 0.7621 in days to come.
Therefore, a strong non-farm payroll data would reinforce sellers’ interest and further plunge the AUDUSD towards our second target as shown above. Otherwise, we might see a temporary rebound above the 0.7784 resistance before bearish continuation.