In the end of last week, the Australian Dollar significantly fell after the publication the weak data on the Australian labour market.
In September, the Unemployment Rate declined by 0.1% to 5.6%, which came as an unexpected surprise. At the same time, the Employment Change for the same period dropped by 9.8 thousands of new jobs that was substantially worse than forecasts of economists, who predicted its growth by 15.0 thousands. Furthermore, data on the Participation Rate missed the expectations as well. In September, the index fell from 64.7% to 64.5% while experts predicted a growth to 64.8%. In addition, the Fulltime Employment declined by 53.0 thousands that was slightly offset by an increase in the Part-time Employment by 43.2 thousands.
The US Dollar, in its turn, remains supported by growing expectations of monetary policy tightening by the Fed before the end of the year.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains unchanged. MACD is falling and giving a sell signal. Stochastic is falling as well and approaching the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.7600 (local low), 0.7580 (17 October low), 0.7560, 0.7533, 0.7516 (13 October low), 0.7500 (19 September low).
Resistance levels: 0.7615 (local high), 0.7638, 0.7650 (local high), 0.7674, 0.7690, 0.7709, 0.7734 (20 October high), 0.7755 (10 August high).
Trading tips
Long positions can be opened after the breakout of the level of 0.7635 with targets at 0.7690, 0.7709, 0.7755 and stop-loss at 0.7595. Validity – 2-4 days.
Short positions can be opened after the breakdown of the level of 0.7600 with targets at 0.7533, 0.7500 and stop-loss at 0.7640. Validity – 2-3 days.
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