AUD/USD analysis: bullish ahead of employment data

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7718

The AUD/USD pair rallied through the critical 0.7700 in the US afternoon, fueled by a sharp recovery in commodities, with oil up roughly 2.5% after the release of US inventories data, and spot gold trading at its highest in two weeks. The pair traded as high as 0.7729, level last seen early September, holding nearby ahead of the Australian monthly jobs report. Employment Change fell in August, down by 3.9K, below market's expectations of 15.2K. The market is now expecting 15.2 new jobs to be added in September, whilst the unemployment rate is expected to tick higher, to 5.7% from previous 5.6%. Should the data beat expectations, the pair may well rally up to the 0.7770 region a strong static resistance, while beyond this last, the market will be eyeing 0.7834, this year high. From a technical point of view, the short term picture is bullish, as in the 1 hour chart, technical indicators have resumed their advance near overbought readings and after a short-lived downward correction, while the 20 SMA accelerated its advance, now around 0.7680, an immediate support. In the 4 hours chart, technical indicators keep heading higher within overbought readings, whilst the price has moved well above a bullish 20 SMA, all of which supports a bullish extension.

Support levels: 0.7680 0.7640 0.7600

Resistance levels: 0.7730 0.7770 0.7810

View Live Chart for the AUD/USD

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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