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AUD/USD bulls tiring at option barrier level

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 30, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    AUD/USD bulls are losing their commitments at the 0.77 handle.

    AUD/USD has been in a bullish trend since since 24th March, drifting initially from 0.7480 and turning into an aggressive rally through broad based weakness in the greenback, but barrier option defence at 0.7700 has kept the bulls it in check once in Europe and again in the US shift while the U.S. dollar managed to pick up some demand after the ADP report beating expectations. We now turn our heads towards the non farm payrolls this week.

    US ADP rises 200k in March - ING

    "Although hard to predict accurately, on balance we think payrolls could come in a little below 200k (or around what we believe to be the current underlying trend), although for us the key feature of the report will be wage growth, " explained James Smith, Economist, Developed Markets at ING Bank.

    AUD/USD levels

    AUD/USD reached a high of 0.7709 and exceeded the (18th March high) of 0.7680. This opens doors to 0.7850 (38.2% retracement of move down from 2014) and the 0.8030/50 target engage (base measurement), as put forward by Karen Jones, chief analyst at Commerzbank. However, adding, "Given the 13 count on the daily and the recent divergence of the daily RSI remain cautious."

    On the flip side, 0.7650 is an area of support and below this level the price was rejected twice yesterday, where he 50 sma on 30 mins sticks converges. Below there lies the 200 sma on the 1hr time frame at 0.7569 guarding a key 0.7510 level.
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