The Australian dollar traded a touch lower below the 0.8400 level against the US dollar. There were a few releases in Australia recently which were on the mixed side and weighed to a great extent on the Aussie dollar. There is a strong bearish pressure formed on the weekly chart of the AUDUSD pair. So, I think selling rallies is a good option in the short term for the pair.
There is a bearish trend line formed on the hourly chart of the AUDUSD pair, which might act as a resistance for the pair in the near term. There is also a resistance around the 0.8450 level, which might act as a hurdle for the pair. If the pair bounces from the current levels, makes a stop around the resistance area and creates a divergence, then we might enter into a sell trade.
Initial target should be around the 0.8350 level, and final target could be around the 0.8300 level. Stop should be placed above the trend line and resistance area.
Reviewing recent events and trades
Yesterday, the US ADP employment change data was released, which missed the mark by around 20K. However, the US dollar was not affected to a certain extent. It was seen trading higher Intraday, as the US dollar buyers were not willing to give up because of this small miss in the data. The Euro was the worst performer as it traded towards the 1.2300 area. Other major pairs were affected as well, which suggests that the FX market sentiment is purely in favor of the US dollar buyers.
Fundamental Outlook for the day
Today, the US initial jobless claims were released which came around the 297k. The forecast was slated for a decline to 295K. So, overall the outcome was not that bad. However, the US dollar was around oversold readings, which pushed the pairs such as EURUSD a bit higher from the current levels. The ECB interest rate decision was also in line with the forecast, which helped the Euro to certain extent.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
