AUD/USD: higher on risk flip, but limited directional strength

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7436

The AUD/USD pair spiked to a fresh weekly high of 0.7469 during European trading hours, underpinned by renewed dollar selling, but failed to sustain gains, although the retracement was limited amid broad dollar's weakness. There were no news in Asia, with local markets recovering following the lead of Wall Street, and backing the Aussie's advance. The positive tone persists, despite the pair trades below the daily descendant trend line coming from this year high of 0.7749, although the upside potential remains limited, given that in the 4 hours chart, the price holds above a mildly bullish 20 SMA, whilst technical indicators consolidate above their mid-lines. In the same chart, the early advance stalled a couple of pips below the 200 EMA, a major dynamic resistance that needs to be broken to confirm a new leg higher. The pair can ease in the case of a u-turn in worldwide equities, but it will take a break below 0.7390 to see it gaining bearish momentum.

Support levels: 0.7390 0.7550 0.7310

Resistance levels: 0.7470 0.7510 0.7550

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.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD remains above nine-day EMA near 1.3650

GBP/USD recovers its recent losses from the previous session, trading around 1.3680 during the European hours on Wednesday. The technical analysis of the daily chart indicates a sustained bullish bias, as the pair trades within an ascending channel pattern.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

Bitcoin price slips below $67,000 ahead of US Nonfarm Payrolls data

Bitcoin price extends losses, and trades below the lower consolidating boundary at $67,300 at the time of writing. A firm close below this level could trigger a deeper correction for BTC. Despite the weakness in price action, institutional demand shows signs of support, recording mild inflows in ETFs so far this week.