Technical Analysis: AUDUSD battles key resistance near 2.5-year top on upbeat jobs report, MYEFO

Technical Analysis: AUDUSD battles key resistance near 2.5-year top on upbeat jobs report, MYEFO

Not only a surprise beat of Aussie Unemployment Rate, from 7.0% to 6.8%, but welcome forecasts by the Treasury, in the Mid-Year Economic and Fiscal Outlook (MYEFO) also favor AUDUSD to refresh the highest levels since June 2018. However, an upward sloping trend line from December 31, 2019, currently around 0.7600, probes the bulls amid overbought RSI conditions. Even if the AUDUSD buyers manage to break the stated trend line resistance, June 2018 peak surrounding 0.7675 will offer an extra upside hurdle to the quote.

Meanwhile, sellers are likely to take entries only if they witness sustained trading below the six-week-old support line, at 0.7485 now. Following that, September high near 0.7415 and the early-November peak around 0.7340 can entertain the AUDUSD bears. However, a daily closing below an ascending trend line from March lows, at 0.7280 now, will confirm the bearish chart pattern, rising wedge, on the daily chart and can suggest a major change in the prevailing uptrend.

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