Friday, 6 July 2018

Aussie above 0.74 ahead of NFP


After yesterday’s quite consolidation mode today AUD/USD is trading higher, up with 0.33% and current market price 0.7411. Despite the upbeat US ISM non-manufacturing PMI and the latest FOMC meeting minutes, which reconfirmed Fed’s tightening policy, the US Dollar was set under selling pressure. Meanwhile the trade war sentiments and the slump in copper prices coundn’t affect the ongoing positive momentum.
Technically speaking the short term outlook remains neutral to bullish. Ont he four hour time frame the price is developing above its flat moving averages. RSI is located above its mid-line but has lost directional strength. Stochastic is showing strong bullish momentum and is nearing oversold readings.
First bullish target is provided by the weekly high at 0.7425 followed by the psychological handle at 0.7500. The downside is supported by 0.7380 and lower at 0.7335.
Today the NFP data is due and the Unemployment rate and Average Hourly Earnings data. The first event is going to be the main markets driver and will bring higher volatility, so it’ll be interesting to observe breakouts. 




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