Technical Analysis – AUDUSD overcomes hurdles after NFP miss
November 3, 2023 2:27 pm
AUDUSD breaks familiar resistance zone after dissapointing NFP data
Technical signals improve, but some caution necessary
AUDUSD rose rapidly in the wake of a weaker-than-expected US jobs report, crossing above the long-term constraining line from the 2020 low at 0.6450 after a couple of failed attempts.
The RSI has finally advanced above its 50 neutral mark for the first time after three months, boosting optimism that the bulls could stay in play in the coming sessions. The rising MACD, which entered the positive area, is adding to the positive signals, but some caution is still necessary as the stochastic oscillator has already entered the overbought zone above 80, suggesting that the recent gains could be short-lived.
The 0.6520 zone, which overlaps with the 38.2% Fibonacci retracement of the latest downleg, is currently in target. Beyond that, the price could stabilize somewhere between its 200-day exponential moving average (EMA) and the 50% Fibonacci of 0.6590. Then, a more challenging battle could take place near the long-term resistance trendline from April 2022 at 0.6677.
In the event the bears squeeze the price back below the 0.6430-0.6450 area, the 20- and 50-day EMAs could immediately come to thre rescue ahead of the broken resistance trendline at 0.6310. Should selling forces persist, the price might next seek shelter around the protective falling line from March 2023 at 0.6250. A step lower could stabilize near the 0.6200 psychological mark or head for the 0.6120-0.6100 constraining zone.
Summing up, the latest upturn in AUDUSD is looking promising. An extension above the 0.6520 wall could add more fuel to the bull run.
AUDUSD breaks familiar resistance zone after dissapointing NFP data
Technical signals improve, but some caution necessary
AUDUSD rose rapidly in the wake of a weaker-than-expected US jobs report, crossing above the long-term constraining line from the 2020 low at 0.6450 after a couple of failed attempts.
The RSI has finally advanced above its 50 neutral mark for the first time after three months, boosting optimism that the bulls could stay in play in the coming sessions. The rising MACD, which entered the positive area, is adding to the positive signals, but some caution is still necessary as the stochastic oscillator has already entered the overbought zone above 80, suggesting that the recent gains could be short-lived.
The 0.6520 zone, which overlaps with the 38.2% Fibonacci retracement of the latest downleg, is currently in target. Beyond that, the price could stabilize somewhere between its 200-day exponential moving average (EMA) and the 50% Fibonacci of 0.6590. Then, a more challenging battle could take place near the long-term resistance trendline from April 2022 at 0.6677.
In the event the bears squeeze the price back below the 0.6430-0.6450 area, the 20- and 50-day EMAs could immediately come to thre rescue ahead of the broken resistance trendline at 0.6310. Should selling forces persist, the price might next seek shelter around the protective falling line from March 2023 at 0.6250. A step lower could stabilize near the 0.6200 psychological mark or head for the 0.6120-0.6100 constraining zone.
Summing up, the latest upturn in AUDUSD is looking promising. An extension above the 0.6520 wall could add more fuel to the bull run.
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