Aussie technicals going into jobs data...
For those who follow our analysis on a regular basis you may recall that the team highlighted a potential sell zone between the 0.79 handle and a H4 Quasimodo resistance level at 0.7888. As you can see, the Aussie tested this level and declined over 100 pips amid the first half of Wednesday’s trading on the back of dollar strength. So, well done to any of our readers who took advantage of this!
The move, however, was a short-lived one. After price surpassed the 0.78 handle and tested active bids around H4 demand at 0.7762-0.7779, the market reversed immediate losses and went on to conquer the 0.79 handle into the closing bell.
Although bolstered by the fact that the pair is seen trading from a 2018 yearly opening level on the weekly timeframe at 0.7801, the commodity currency is seen trading within close proximity to a daily resistance area at 0.7986-0.7951.
Potential trading zones:
We really like the look of the 0.7969/0.7947 region on the H4 timeframe marked in green. Comprised of a H4 161.8% Fib ext. point at 0.7969, a H4 trendline resistance taken from the low 0.8004, a H4 50.0% resistance at 0.7947, a H4 mid-level resistance at 0.7950 and the underside of the aforementioned daily resistance area, this barrier is a reasonably attractive sell zone, in our technical view. Therefore, do keep an eyeball on price action around this area today should it come into the spotlight.
Data points to consider: AU. jobs figures at 12.30am; US PPI m/m, Empire state manufacturing index, Philly Fed Manufacturing index and US weekly unemployment claims at 1.30pm; US industrial production m/m and capacity utilization rate at 2.15pm GMT.
The move, however, was a short-lived one. After price surpassed the 0.78 handle and tested active bids around H4 demand at 0.7762-0.7779, the market reversed immediate losses and went on to conquer the 0.79 handle into the closing bell.
Although bolstered by the fact that the pair is seen trading from a 2018 yearly opening level on the weekly timeframe at 0.7801, the commodity currency is seen trading within close proximity to a daily resistance area at 0.7986-0.7951.
Potential trading zones:
We really like the look of the 0.7969/0.7947 region on the H4 timeframe marked in green. Comprised of a H4 161.8% Fib ext. point at 0.7969, a H4 trendline resistance taken from the low 0.8004, a H4 50.0% resistance at 0.7947, a H4 mid-level resistance at 0.7950 and the underside of the aforementioned daily resistance area, this barrier is a reasonably attractive sell zone, in our technical view. Therefore, do keep an eyeball on price action around this area today should it come into the spotlight.
Data points to consider: AU. jobs figures at 12.30am; US PPI m/m, Empire state manufacturing index, Philly Fed Manufacturing index and US weekly unemployment claims at 1.30pm; US industrial production m/m and capacity utilization rate at 2.15pm GMT.
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