AUD/USD Forecast – Aussie Dollar Spikes Higher Post Employment Report

AUD/USD Forecast – Aussie Dollar Spikes Higher Post Employment Report

  • – The Aussie Dollar registered decent gains and moved above the 0.7565-70 resistance against the US Dollar.
  • – There is a contracting triangle pattern with resistance at 0.7630 forming on the hourly chart of AUD/USD.
  • – Today in Australia, the Employment Change figure for May 2017 released by the Australian Bureau of Statistics posted 42.0K, better than the forecast of 10K.

 

Australia’s Employment Change

Recently in Australia, the Employment Change figure for May 2017 was released by the Australian Bureau of Statistics. The market was positioned for a change of 10K in May 2017, compared to the last change of 37.4K.

 

However, the actual result was a lot better, as the Employment Change was 42K. Moreover, the Unemployment Rate in May 2017 dropped from the last reading of 5.7% to 5.5%. The report added that “Unemployment decreased 18,600 to 711,900. The number of unemployed persons looking for full-time work decreased 23,000 to 489,300 and the number of unemployed persons only looking for part-time work increased 4,400 to 222,700”.

 

It looks like the AUD/USD pair may gain traction due to the positive change, and trade above 0.7650 in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar after forming a support base near 0.7520 against the US Dollar gained pace and started an upside move. The AUD/USD pair moved nicely and was able to break a major resistance at 0.7565-70.

 

AUD/USD Technical Analysis Aussie Dollar

 

During the upside move, the pair broke the 1.236 extension of the last drop from the 0.7567 high to 0.7510 low and the 100 simple moving average. Later, the pair gained momentum above 0.7600 after the release of the Employment Change figure for May 2017.

 

At the moment, the pair is forming a contracting triangle pattern with resistance at 0.7630 forming on the hourly chart. The triangle support is near the 50% Fib retracement level of the last wave from the 0.7567 low to 0.76313 high. There is a high chance that the pair may complete the pattern and break past 0.7630 in the near term. Above 0.7630, the next target for buyers could be 0.7650. On the downside, a break below 0.7600 might call for a test of the 0.7560 support.

Tags: , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry