AUD/USD Forecast: Recovery stalled below 0.6900 figure
|AUD/USD Current Price: 0.6885
- Australian employment figures surprised to the upside, with unemployment down to 5.2%.
- Rising equities and gold underpinned the Aussie during US trading hours.
- AUD/USD lost its bearish stance, but further gains will depend on a break above 0.6900.
The Australian dollar started the day rising against all of its major rivals, following a solid local employment report, as the country added 39.9K new jobs in November. Furthermore, the unemployment rate fell to 5.2%, while the participation rate remained steady at 66%. On a negative note, most of those positions were part-time jobs, up in the month by 35.7K. Full-time jobs were up by 4.2K. The AUD/USD pair peaked at 0.6880 with the news, easing during London trading hours and resuming its advance by the end of the day, to reach 0.6887. The recovery was backed by Wall Street reaching record highs and gold soaring at the same time.
AUD/USD short-term technical outlook
The AUD/USD pair has turned short-term positive, but given that the rally stalled below 0.6900, chances for additional advances are limited. In the 4-hour chart, the pair has found support around a flat 20 SMA, while technical indicators recovered within positive levels, the RSI having already lost directional strength and the Momentum losing strength. As said, the upside seems limited by the 0.6900 threshold, while the immediate support comes at 0.6865.
Support levels: 0.6865 0.6830 0.6800
Resistance levels: 0.6900 0.6935 0.6970
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