Falling toward 61.8% retracement
The AUDUSD is trading to a new session low and in the process is trading to the lowest level since October 17. The currency remains the weakest currency of the day. It was pushed lower by weaker than expected jobs data. The employment change fell -19.0K versus an estimate of 15.0K. The unemployment rate rose to 5.3% from 5.2%. The participation rate fell to 66.0% from 66.1%
Technically the price fell sharply after the report. Looking at the 4 hour chart above, the fall took the price below :
- upward and downward sloping trendlines
- The 200 bar moving average on the 4 hour chart at 0.68157
- The swing high and swing lows from October 11. October 25 and October 28 at 0.68097 area, and the
- 50% retracement at 0.67996
The pair is currently looking the test the 61.8% retracement of the move up from the October low at 0.67690.
The range for the day 68 pips. The average over the last 22 days has been fairly low at 43 pips. The price action is trending.
Drilling down to the 5 minutes chart below, apart from a few blips above the 100 bar moving average in the 5 minutes chart, most of the price action has been below that moving average level. It currently comes in at 0.6789. It will take a move above that MA (and stay above) for the buyers to breathe a sigh of relief. Until then, the sellers have the upper hand. Other levels to eye would be the topside trend line and the retracement area of the last trend leg lower at 0.6785-89. The 50% is at the same level of the 200 bar MA. So that increases the levels importance going forward.
