FxWirePro: AUD/USD Breaks 61.8% Fib, Hits Fresh 11-Week Lows on Poor Jobs Data - Short Rallies around 0.72

FxWirePro: AUD/USD Breaks 61.8% Fib, Hits Fresh 11-Week Lows on Poor Jobs Data - Short Rallies around 0.72

19 May 2016, 07:48
Roberto Jacobs
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FxWirePro: AUD/USD Breaks 61.8% Fib, Hits Fresh 11-Week Lows on Poor Jobs Data - Short Rallies around 0.72

  • AUD/USD extends decline, hits fresh 11-week lows at 0.7199, in a knee-jerk reaction to weak Australian jobs report. 
  • Australia's unemployment rate held steady at 5.7% in March, while 10,800 jobs were added, below expectations of a 12,000 net increase.  
  • The labor force participation rate unexpectedly fell from 64.9% in March to 64.8% last month, the lowest in almost a year. 
  • Technicals support further downside, pair on track to test 78.6% Fib at 0.7043. 
  • Hawkish FOMC minutes document will continue to underpin the buck at the expense of the AUD. 
  • AUD/USD finds immediate support at 0.71 (double bottom Feb 15th and 29th), while immediate resistance is seen at 0.7212 (61.8% Fib). 
  • Price action has dipped below weekly cloud and Techs are biased lower.

Recommendation: Short rallies around 0.72/0.7210, SL: 0.73, TP: 0.7145/0.71/0.7045 

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