• AUD/USD will start the week after a poor performance over the last couple of days. 
  • The Aussie jobs data will be eyed as bears test 0.72 the figure. 

For the start of the week, AUD/USD has been on the backfoot having succumbed to a USD rebound on Friday. The following takes into account the price action in the greenback and the prospects for more upside which could tip the Aussie over the edge for the week ahead

DXY daily charts

While the upside was forecasted, there could still be some more to go on a break of the 38.2% Fibonacci level near 95.24:

The 61.8% Fibonacci level is near 95.63 which has a confluence with prior support as illustrated above making for a compelling target. 

This leaves the outlook for AUD/USD bearish, as follows:

A break 0.7200 support would be significant considering the psychological impact of a blowout of the dynamic trendline support. 0.7130 will be the next key support as prior lows ahead of 0.7080 prior lows.

On the other hand, the bullish inverse head and shoulders could play out as follows:

A move to the upside from the trendline support could be the start of the makings of the pattern. A bust through the neckline would be the nail in the coffin for the bears. This level comes in near 0.7320.  Likely trigger points, one way or the other, would be with Chinese and Aussie data which is anticipated to be another positive report considering the easing of restrictions heading into the holiday period. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers toward 1.0900 in quiet session

EUR/USD recovers toward 1.0900 in quiet session

EUR/USD has managed to stage a rebound toward 1.0900 in the European morning after having edged lower during the Asian trading hours. Ahead of the PCE inflation data, however, the pair is having a difficult time making a decisive move in either direction.

EUR/USD News

GBP/USD stays below 1.2400 ahead of key US data

GBP/USD stays below 1.2400 ahead of key US data

GBP/USD gained traction and erased a portion of its daily losses in the European morning. Nevertheless, with the cautious market mood helping the US Dollar hold its ground against its rivals ahead of the PCE inflation data, the pair continues to trade below 1.2400.

GBP/USD News

Gold remains on the defensive around $1,925 ahead of US PCE

Gold remains on the defensive around $1,925 ahead of US PCE

Gold price trades with a mild negative bias for the second successive day on Friday and hovers around the $1,925 region during the early European session. The intraday downtick, however, lacks follow-through, warranting some caution before positioning for a deeper corrective pullback from a nine-month peak touched the previous day.

Gold News

Is the dramatic rise in whale activity in AAVE, MATIC and DYDX a sell signal?

Is the dramatic rise in whale activity in AAVE, MATIC and DYDX a sell signal?

AAVE, MATIC and DYDX price rallied alongside large market capitalization cryptocurrencies Bitcoin and Ethereum in January. Experts at the crypto intelligence tracker Santiment believe the recent spike in activity by whales on these networks needs to be watched closely.

Read more

Breaking: US annual Core PCE inflation declines to 4.4% in December as expected

Breaking: US annual Core PCE inflation declines to 4.4% in December as expected

Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, declined to 5% on a yearly basis in December from 5.5% in November, the US Bureau of Economic Analysis reported on Friday.

Read more

Forex MAJORS

Cryptocurrencies

Signatures