AUD/USD analysis: Aussie breaks lower, nears 0.7700 threshold

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7724

Soft Australian employment figures join forces with falling equities in detriment of the Aussie.
AUD/USD at risk of retaking the bearish path if it can't regain the 0.7740 level.

Aussie bulls finally gave up and the AUD/USD pair fell to its lowest in over a week after reaching a 5-week high of 0.7812 during the past Asian session. The Aussie bared pretty well with poor Australian employment data at the beginning of the day, but for sure the numbers dented bulls' confidence. According to the official release, the country added just 4.9K new jobs well below the expected 21K amid a sharp loss n fulltime employment of 19.9K. The unemployment rate ticked down to 5.5% as expected, although the participation rate shrunk to 65.5% from the previous and expected 65.7%. Easing commodities and plummeting equities added to the pair's decline by the end of the day. The fact that it broke below 0.7740, has put at risk the bullish trend from earlier this month, and unless the pair quickly recovers the level, further slides are to be expected. Technical readings in the 4 hours chart support a bearish extension, as in the 4 hours chart, the pair has also broken below all of its moving averages, while technical indicators accelerate south within negative territory, leaning the scale to the downside.

Support levels: 0.7700 0.7765 0.7720

Resistance levels:0.7740 0.7785 0.7820

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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