The Aussie dollar fell 35 pips sharply after the January labor force data hit the wires.
In January employment increased by 16,000 from 34,700 in December. The cross has re-tested 0.7900 post the data it’s 38.2 fib reaction (0.8135-0.7758 retracement).
The unemployment rate decreased by 0.01% points to 5.5%. The labor participation rates decreased by 0.1% to 65.6.
After the stronger than expected US inflation data overnight the dollar rebound and retraced. This supported the cross rally more than a percent.
AUDUSD: Intraday range remains between 0.7900 and 0.7960 breach targets at 0.8000 and 0.8030.
AUDNZD: The cross currency breaks down the multi-support level 1.0825-1.0840 and retraced nearly 60.0% of the previous rally (1.0370-1.1290). It’s 61.85 fib reaction and 100MA (weekly) finds at 1.0715 below this 1.0700 exits its 20MA (monthly). Earlier bullish break through symmetrical triangle trendline finds at 1.0650.
EURAUD: The cross has been failing to close above Dec 2017. Past eight sessions price action locked in a tight range 1.5800-1.5600. Though the price spikes through the range failed to close above. The daily RSI and the oscillator (RVI) are showing bearish signals.
A daily close below 1.5630/1.5600 could strengthen the bearish view, target 1.5500 initially. Alternatively, a daily close above 1.5830 could open to 1.6000 and 1.6200
AUDJPY: The cross has retraced 80.0 of the previous rally (81.50-90.30). The daily RSI nearly oversold lies at 31. In our last week’s article, we forecast for “83.60 and 83.15” the cross having a low at 83.30 and currently trading at 84.30.
We believe in case of any further retracement below 83.00 could shift the RSI and Oscillator to oversold zone.
View: Buy at 82.00 sl below 81.50 target 84.00.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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