Chart Of The Day: Four-month-old support-line can challenge AUDUSD’s employment data-driven downside

Thu, 16 May 2019 14:30

With an eight-month high Australian unemployment rate signaling the Reserve Bank of Australia's (RBA) rate cut, the AUDUSD pair dropped to the lowest since January's flash crash just after the jobs report. However, a downward slanting trend-line stretched since January 07 can question sellers around 0.6880/75, failing to which can recall January 2016 low near 0.6820. In a case where prices keep declining under 0.6820, 0.6800 and the flash crash bottom of 0.6730 can lure the Bears.

Meanwhile, 0.6960 and a month-long downward slanting resistance-line at 0.6980 can question the pair's near-term upside. Should there be additional rise above 0.6980, 0.7000 round-figure and 0.7030 may act as buffers during the quote's rally to 50-day SMA level of 0.7075.

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