AUDUSD in red on Friday after weak Australian data; eyes US jobs figures for fresh signal
The Aussie dollar dipped on Friday after posting new marginally higher high at 0.7869 of uninterrupted four-week rally, which was so far capped by falling weekly 200SMA.
Weaker than expected Australian data, released overnight, weighed on Aussie (trade balance showed a gap of A$628 million in November, missing forecast for A$550 million surplus).
Near-term focus is shifting lower as risk of pullback on overbought studies and profit-taking on month-long rally rises.
Stronger bearish signal will be generated on reversal of daily RSI and slow stochastic (which already turned south) from overbought zone.
Friday’s close in red will be also negative signal for bearish extension towards initial strong supports at 0.7816 (daily cloud top) and 0.7787 (rising 10SMA).
Meanwhile, US jobs data are eyed for fresh signals. Strong reading in Dec NFP would further accelerate pullback and generate stronger correction signal.
Conversely, weak jobs numbers would deflate the greenback and offer fresh support to the Aussie for renewed attempts through weekly 200SMA and attack at strong barrier at 0.7886 (Fibo 61.8% of 0.8124/0.7499 descend).
Res: 0.7856; 0.7886; 0.7897; 0.7977
Sup: 0.7834; 0.7816; 0.7787; 0.7777