Buyers still have more work to do in order to claim a further upside break
It’s a similar story to price action yesterday as buyers continue to keep the upside momentum with price trading above 0.6800 but are needing to break above the swing region resistance @ 0.6818-22 in order to establish further momentum.
The high yesterday touched 0.6830, just shy of the June low (can be viewed as resistance now) @ 0.6832. That will be another key near-term spot to watch out for on the daily price action in the sessions ahead.
Looking towards the end of the trading week, I reckon price action should observe more calm in the European morning before we get to the US jobs report release and Fed chair Powell’s speech in Zurich after.
The former will be the key risk event to watch out for first and once again, all eyes will be on whether or not we’ll see any notable downside surprises to the data. A solid labour market report is something that traders are used to these days so something similar shouldn’t offer markets much to go with in reaction to the release.
If anything else, perhaps Fed chair Powell’s speech may hold more meaning for markets as it could possibly help to detract or reaffirm market expectations ahead of the next FOMC meeting in around two weeks’ time.
For AUD/USD, it’s much like yesterday as buyers need to break above the levels highlighted above in order to establish more momentum towards 0.7000 while sellers will have to take gradual steps to recapture the near-term bias once again. A move back below 0.6800 will be the first significant step in that regard.