Forex technical analysis: AUDUSD little changed after employment rally fizzles
Gains given back but 100 hour MA holding
In Australia, toward the beginning of the trading day, they announced better jobs data with the employment change adding 37.4K jobs vs 4.5K estimate. This comes on the back of a 60.0K gain last month. The Unemployment rate moved to 5.7% from 5.9%. That rate equals the lowest level for the year. The mix of job creation was skewed toward the part time jobs with part time jobs adding 49K vs 11.6K for full time, but last month, the reverse was true with Full time adding 74.5K while part time fell -13.6K.
The AUDUSD should have gone higher, right? Well for a little but the price has come down and currently trades a few pips down on the day?
What happened technically and what do we need to watch for now?
The spike higher took the price above the recent highs and also the 50% of the move down from the May 2nd high (see chart above). Yesterday and on Monday, that level was tested and held.
However the rally to the next target at the 61.8% fell short. When the price moved back below the weeks high and the 50%, that was it. The buyers on the break, gave up. The price action became more balanced, with the price trading in a 30 pip range.
Looking at the chart, the lows have been able to hold near the 100 hour MA (blue line in the chart above). That MA comes in at 0.74194. It hsas been tested three times today, and is currently testing the level right now.
So buyers are trying to hold support now. While the 50% and the 0.7445 high from Monday is resistance. Looking for a break with momentum.