The Australian dollar is trading slightly lower at the end of Friday’s session after recovering almost all of its earlier losses. The Aussie was under pressure shortly after the release of the U.S. non-farm payroll report at 12:30 p.m. GMT, which showed more jobs had been created in the U.S. than expected in October, providing the US Federal Reserve further proof that the economic recovery had resumed. momentum.
At 18:24 GMT, the AUD / USD is trading at 0.7398, down 0.0002 or -0.02%. This is up from an intraday low of 0.7360.
Non-farm payrolls increased by 531,000 jobs last month, above 450,000 jobs forecast, as the surge in COVID-19 infections over the summer eased. Data for August and September have also been revised upwards to show that 235,000 additional jobs were created during those months.
Price action at the end of the day suggests that pre-weekend profit taking is taking place.
Technical analysis of the daily swing chart
The main trend is downward on the daily swing chart. Trade through the intraday low at .7360 will signal a resumption of the bearish trend. A move through .7556 will change the main trend upward.
The minor trend is also downward. A trade through .7471 will change the minor trend upward. This will also shift the momentum upward.
The short-term range is 0.7170 to 0.7556. AUD / USD found intraday support inside its 0.7363 to 0.7317 retracement area. Based on the current price, further support stands at 0.7379.
The minor range is 0.7556 to 0.7360. Its 50% level at 0.7458 is a potential upside target and a resistance level.
Technical forecasts of the daily swing chart
The direction of the AUD / USD towards Friday’s close will be determined by the trader’s reaction to 0.7400.
A sustained move above .7400 towards the close on Friday will indicate the presence of buyers. If this move creates enough bullish momentum, wait for the buy to eventually expand to 0.7458, followed by 0.7471.
A sustained move below .7400 will signal the presence of sellers. This could lead to a retest of .7379 and the support cluster to .7363 – .7360.
Pulling out .7360 will indicate that the sell is getting stronger with .7317 the next likely target on the downside.