AUDUSD plunges with positive U.S unemployment claims data with the pair breaking below previous support at 0.7877. Prices are expected to continue falling towards Fibonacci Expansion 200.0% at 0.7575 given its strong bearish momentum and positive data from U.S.
Focusing on H4 chart, the pair undergoes temporary retracement with stochastic oscillator in the oversold region. Although selling action in the market starts to weaken, it is not advisable to engage in any buy entries as the trading week comes to a close today and U.S Advance GDP q/q is to be released later in the day.
The pair was observed to exhaust at Fibonacci Expansion 200.0% at 0.7742 and retraces back after the drop. There are no clear indications of the direction of market movements in the mean time.