AUD/USD 0.7750 Holding Strong
AUDUSD:- As suggested price did in fact fall and reach our desired target region of 0.77500. This area has acted as a strong area of support as last week we saw price rally extensively out of this region. The over-riding directional bias on this pair is still bullish and this was backed up by the RBA suggesting that there is still continued optimism within the Australian economy. The start of this week the price has fallen and we will be watching carefully for a retracement to the key level of 0.7800. This level previously held strong on the 15th of August and is a key psychological price point for the pair. If the price was to fall further there would have to be a clear weekly closure back below 0.77500 to consider a complete reversal for this pair.
On Thursday the 19th of October we have the Employment figures being released. Last month ( September ) saw a far better than expected at 54.2K. This month is Forecasted at 15k, if figures come out better than expected once again this will increase the optimism within the economy and we could see the price spike towards 0.79250 and above.
Previous: Since hitting the suggested target of 0.8100 we have since seen price experience a swift drawdown and fall " currently " 270 pips to do the downside. Since previously retesting the major key level of Resistance. The 3 prior weeks have seen a lot of downside momentum suggesting we may have formed a long-term high at 0.8100 and we are now entering a correction or retracement phase. On the chart, you can see how we have taken a Weekly perspective to understand what may be occurring. The Australian Dollar was trapped below 0.77500 for roughly 18 months. This price point acted as such a resistance barrier that it would be expected to be a magnet point for the price to fall back towards. In addition, we have lined up a longer-term Fibonacci that suggests retracement zones in which to concentrate on before rebounding. 0.77500 lines up just below our primary key level within the market. We could expect to go and retest this level before making a new wave to the upside. We will be watching for suggestive price action for a reversal back to the upside if we revisit 0.77500