AUDUSD – bears entered consolidation mode after mild reaction on Australian jobs data
The Aussie dollar showed little reaction on Australian jobs data which came mixed in October. Employment fell significantly, showing only 3.7K new jobs created in Oct, falling well below 17.5K forecast and upwards-revised Sep figure at 26.6K.
On the other side, unemployment fell to 5.4% in Oct, undershooting 5.5% forecast / Sep figure.
The pair bounced from new 4 ½ month low at 0.7567 but upside action was limited at 0.7600 zone and capped by falling hourly cloud.
Overall structure is bearish and shows scope for further weakness as weekly cloud’s twist (0.7470) attracts, with bears being reinforced by formation of 20/200SMA death-cross.
Fresh bears could travel to initial targets at 0.7535/16 (21 June trough / Fibo 76.4% of 0.7328/0.8124).
Meanwhile, extended consolidation with stronger upticks cannot be ruled out as slow stochastic is reversing from oversold zone on daily chart.
Rallies face hourly cloud (spanned between 0.7608/20) and should be ideally capped by falling 10SMA (0.7643).
Extended upticks should not exceed 0.7700 barrier (200SMA).
Batch of data from the US is due later today and watched for fresh signals.
Res: 0.7608; 0.7620; 0.7643; 0.7680
Sup: 0.7567; 0.7535; 0.7516; 0.7420