Sellers are getting comfortable with price pivoting around the 0.7000 level
It’s make or break time today for AUD/USD as the low touched 0.6985 earlier, posting a double-bottom pattern as price tested support from the 25 April low @ 0.6988. Traders are awaiting the US jobs report for more clues on how to proceed but the technical levels indicate that we’re either going to observe a rebound or a further break downwards soon enough.
Sellers are starting to feel a degree of comfort with testing levels just under the 0.7000 handle now as I reckon key stops only lie somewhere around the 0.6980 level. If that gets taken out in trading today, I would expect a quick run to the downside for the pair because of the “air pocket” to the next line of bids.
However, the double-bottom pattern noted above provides a good reason for buyers to also get involved to squeeze out short positions if the US data fails to sparkle. Key near-term levels lie in the hourly moving averages @ 0.7035 and 0.7041 currently.
Those will be levels that buyers need to break above in order to observe an extension higher and retrace losses seen since mid-April. As for the period between now and the US jobs report release, expect the pair to trade in a narrow range – much like everything else.