AUDUSD continues to remain below the downward sloping trend line and the pair is expected to continue on a bearish run. Cash Rate was revised back to 2.25% after last month’s drop to 2.00%, resulting in a small increase in prices. However, fundamentals of the Aussie remains weak and bearish movements are still expected. With the upcoming release of U.S ADP Non-Farm Employment Change, high volatility is expected and would continue all the way till Friday’s actual release of Non-Farm Employment Change data.
Focusing on H4 chart, the pair has touhed 0.7837, a strong resistance for the past 4 weeks. With the attention now focusing on U.S Non-Farm Employment Change, we can expect prices to continue falling with bets on a positive data for the Dollar. In the short run (today and tomorrow), we can expect the pair to fall towards the support at 0.7740 and should candles break below 0.7740, the pair may be sent towards 0.7647, the low during February.
Focusing on H1 chart, the pair shown signs of a strong resistance at 0.7840 after failing to break above twice yesterday. However, candles refuse to hold below 200 EMA and just above 0.7800, showing signs of a weakened selling action in the market. Thus, a bearish run for the pair can only be confirmed if the pair breaks below 0.7800 today.
|Bearish if candles hold below 0.78||0.7740||0.7800||0.7840||0.7900|