AUD/USD analysis: back to bearish after Wednesday's recovery

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7711

Australian employment data disappointed, weighing on the Aussie.
Fears of a trade war triggered by the US put the Australian dollar under pressure.

The AUD/USD pair retreated from a daily high of 0.7785 achieved at the beginning of the day, as Australian employment data disappointed. According to the official figures, the economy added 17.5K new jobs in February, less than the 20.0K expected, while January reading suffered a downward revision to 12.5K from the previous estimate of 16.0K. The unemployment resulted at 5.6%, above the previous and the expected 5.5%. The pair followed sentiment during US trading hours, bottoming at 0.7686 to settle above the 0.7700 figure, but below the key 0.7740 level, the 61.8% retracement of the December/January rally. Australia has nothing scheduled for the upcoming Asian session. From a technical point of view, the pair is at risk of resuming its decline, as in the 4 hours chart, the price is hovering around a modestly bullish 20 SMA, while technical indicators hover around their mid-lines, lacking clear directional strength. Wednesday's low at 0.7670 is now a key support, with a break below it signaling a steeper decline for this Friday.

Support levels: 0.7700 0.7670 0.7625

Resistance levels: 0.7740 0.7785 0.7410

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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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