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The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Friday, decreasing the price of AUDUSD to less than 0.7550 ahead of the US nonfarm payrolls data. The technical bias remains bullish because of a higher high in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded around 0.7530. A support can be noted around 0.7516, a short term horizontal support ahead of 0.7500, the psychological number and then 0.7462, a key trendline support on higher timeframes. A break and hourly closing below the 0.7462 support shall incite renewed selling interest, validating a move towards the 0.7400 support zone.
On the upside, a hurdle can be noted near 0.7547, an immediate trendline resistance ahead of 0.7556, the confluence of two trendlines as demonstrated with red and pink colors in the given above hourly chart. A break and hourly closing above the 0.7556 trendline resistance shall incite renewed buying interest, validating a move towards the 0.7600 resistance zone. The technical bias shall remain bullish as long as the 0.7400 support area is intact.
How AUDUSD Reacted on Past Nonfarm Payrolls Releases?
Last time the US labor department released its nonfarm payrolls data on 10th March, 2017. The AUD/USD pair fell by almost 95 pips after the release of the aforementioned nonfarm payrolls report as the actual reading was upbeat i.e. 235k v 190k.
Similarly, the pair fell by more than 80 pips after the release of January’s NFP report as the actual reading came out 227k vs 175k.
What Assets to Trade after Today’s NFP Release
In addition to AUD/USD, trading GBPUSD, USDCAD, NZDUSD, Gold and Silver can be a profitable move as these assets react sharply after the release of US nonfarm payrolls report.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair can be a good strategy if the nfp remains above projections and vice versa.
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