AUD/USD analysis: holding ground, but sellers above 0.7700 still strong

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7695

The Australian dollar rallied to a fresh 3-month high of 0.7731 against the greenback, fueled by the Australian monthly employment report that showed that the unemployment rate fell to 5.7% from previous 5.8%, whilst the economy added 13,500 new jobs, both beating expectations. Still, full-time jobs fell by 44.8K in the month, reversing the trend that surged by the ends of 2016. The participation rate, decline to 64.6% from previous 64.7%. The AUD/USD pair closed the day in the red, a couple of pips below the 0.7700 level, weighed by diminishing optimism and profit taking on advances beyond the mentioned level. From a technical point of view, the price remains above a bullish 20 SMA in its 4 hours chart, currently at 0.7675 whilst the RSI indicator head modestly higher around 55, limiting chances of a downward move, despite a falling Momentum, now stuck around the 100 level. As commented on previous updates, investors are not quite convinced of the benefits of pushing the pair beyond the 0.7700, and gains beyond the level will likely be short-lived. The pair however, could extend up 0.7778, November 2016 high, but as higher the advance, the higher the risk of a quick reversal.

Support levels: 0.7675 0.7630 0.7600

Resistance levels: 0.7710 0.7745 0.7780

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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