AUD/USD Price Analysis: Extends Australia employment inspired rebound from 200-EMA towards 0.6850
- AUD/USD jumps the most in a week, snapping four-day downtrend, after upbeat Australia jobs report.
- Bullish MACD signals, broad US Dollar weakness add strength to Aussie pair’s recovery targeting “double tops”.
- Bears need to smash seven-week-old rising support line to retake control.
AUD/USD justifies a strong positive surprise from the Australian employment report for June by printing the biggest daily gains in a week, as well as snapping a four-day losing streak, heading into Thursday’s European session. That said, the Aussie pair seesaws around the intraday high of 0.6840, up 0.90% on a day by the press time.
It’s worth noting that Australia’s headline Employment Change and Unemployment Rate marked positive figures for June while the Participation Rate eased whereas the Part-Time Employment numbers slide for the said month.
Also read: AUD/USD jumps 30 pips on better-than-forecast Australia employment report, PBoC status quo
Technically, the AUD/USD pair bounces off the 200-Exponential Moving Average (EMA) amid bullish MACD signals and an upbeat RSI (14) line, which in turn suggests further upside of the quote towards the 0.6900 resistance confluence comprising tops marked in June-July. The stated “double tops” also become crucial as it encompasses the 61.8% Fibonacci retracement level of the pair’s February-May downside.
Additionally, the RSI (14) is above 50.0 and may soon hit the overbought area, which in turn can join the 0.6900 round figure to challenge the AUD/USD bulls.
Hence, the AUD/USD pair’s upside past 0.6900 appears less likely, which if happens won’t hesitate to cross the 0.7000 psychological magnet to aim for the mid-February swing high of around 0.7030.
On the flip side, a daily closing beneath the 200-EMA level of around 0.6750 isn’t an open invitation to the AUD/USD bears as an ascending support line from May 31, close to 0.6695 at the latest, will act as an additional check for the bears.
AUD/USD: Daily chart
Trend: Limited upside expected