AUDUSD was boosted by solid jobs numbers but recovery needs break above 0.8030 for confirmation
Positive jobs data from Australia (upbeat employment change showed 54.2K new jobs added in August vs 15K forecasted and unemployment rate staying unchanged at 5.6%) inflated Australian dollar in Asia.
The Aussie jumped above 0.8000 barrier after three-day fall, including today’s action, found support at 0.7970 (daily Kijun-sen / 20SMA, as well as main bull-trendline off 0.7370).
However, gains were limited on disappointing data from China (Industrial production rose by 6.0% in August, undershooting forecast at 6.6% and also falling well below 6.4% in July and Retail sales also missed, coming at 10.1% in August vs 1.5% forecast and 6.4% in July).
This may offset positive impact from positive jobs data and keep near-term bias with bears while the price is unable to clearly break above initial 0.8000 barrier.
Stronger recovery needs break above 0.8000 and next pivot at 0.8030 (daily Tenkan-sen / Fibo 38.2% of 0.8124/0.7970 pullback) which would generate stronger bullish signal.
Otherwise, the downside is expected to remain vulnerable for renewed attack at 0.7970 pivot, loss of which would trigger fresh extension of pullback from 0.8124 towards 0.7929 (Fibo 61.8%) and expose daily cloud top at 0.7883.
Res: 0.8016; 0.8030; 0.8043; 0.8058
Sup: 0.7970; 0.7939; 0.7929; 0.7883
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
