AUD/USD’s nearest support is at 0.7033. If the price closes below this level for the day, we could see a drop towards 0.6980, which is where the 50-day moving average is.
The RSI’s moving lower and is now near 45, which suggests we’re looking at a neutral to bearish outlook. Unless the RSI gets back up above 50, the price is more likely to fall than rise.
Key Trading Levels to Watch
Some key trading levels to keep an eye on are a bullish breakout trigger at 0.7140, where a clean break above this resistance would be a pretty clear sign of a structural reversal to 0.7200. Our immediate resistance sits at 0.7091, which is aligned with the 50-EMA that’s flattened and is currently capping our intraday gains.
On the downside, we’ve got some critical support between 0.7020 and 0.7030 – often considered the “line in the sand” for the bulls. If we can’t hold this zone, we’re looking at a deeper decline towards 0.6980.
The Analyst’s Verdict: Watch the NFP Open
Traders are likely to stay pretty nimble ahead of Friday’s U.S. Non-Farm Payrolls (NFP). While the RBA is hawkish and the Australian economy’s booming, a “hot” U.S. jobs report (>100k) could supercharge the USD and force a breakdown towards 0.6900.
Trade idea: If there’s a confirmed move above 0.7140, consider buying with a target of 0.7180. Alternatively, if the price stays below 0.7030, consider selling with a target of 0.6980.
