- AUD/USD has refreshed its day’s low at 0.7083 as volatility soars amid the risk-off mood.
- The 50-EMA that was providing support to the Australian Dollar is now providing a cushion to the US Dollar.
- The formation of a Wyckoff Inventory Distribution indicates a bearish reversal.
The AUD/USD pair has refreshed its day’s low at 0.7083 as investors have turned risk-averse amid the interest rate decision by the Federal Reserve (Fed) this week. The US Dollar Index (DXY) has displayed a wild gyration in a 101.40-101.57 range as the volatility is accelerating dramatically.
S&P500 futures have surrendered their entire gains recorded on Friday and is expected to remain on tenterhooks amid a risk-off mood. The 10-year US Treasury yields have dropped below 3.51%.
AUD/USD is demonstrating Wyckoff’s inventory distribution on an hourly scale, which indicates an inventory shift from the institutional investors to the retail participants. The Aussie asset has also witnessed an Upthrust formation that indicates the presence of responsive sellers.
The 50-period Exponential Moving Average (EMA) at 0.7100, which was providing support to the Australian Dollar is now providing cushion to the US Dollar.
While the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates that investors are awaiting a fresh trigger for a power-pack action.
Should the asset break below January 25 low at 0.7062, US Dollar bulls will drag the asset toward the psychological support at 0.7000 followed by January 17 low at 0.6948.
On the contrary, a break above August 11 high at 0.7137 will send the major toward the round-level resistance at 0.7200. A breach of the latter will expose the asset to June 3 high at 0.7283.
On the contrary, a downside move below December 29 low at 0.6710 will drag the major further toward December 22 low at 0.6650 followed by November 21 low at 0.6585.
AUD/USD hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds lower ground below 1.0300 as traders await US NFP
EUR/USD holds lower ground below 1.0300 in European trading hours on Friday. Concerns over US President-elect Trump's policies and hawkish Fed expectations favor the US Dollar ahead of the critical US Nonfarm Payrolls data release.
GBP/USD falls back below 1.2300, US NFP eyed
GBP/USD is falling back below 1.2300 in the European morning on Friday, failing to sustain the rebound. The pair remains vulnerable amid persistent US Dollat strength and the UK bond market turmoil. The focus now shifts to the US labor market data for fresh trading directives.
Gold price sticks to intraday gains near multi-week top; US NFP in focus
Gold price attracts buyers for the fourth straight day on Friday amid some haven flows. The Fed’s hawkish stance, elevated US bond yields and a bullish USD should cap gains. Traders might also opt to wait for the release of the key US NFP report later this Friday.
Nonfarm Payrolls forecast: US December job gains set to decline sharply from November
US Nonfarm Payrolls are expected to rise by 160K in December after jumping by 227K in November. US jobs data is set to rock the US Dollar after hawkish Fed Minutes published on Wednesday.
How to trade NFP, one of the most volatile events Premium
NFP is the acronym for Nonfarm Payrolls, arguably the most important economic data release in the world. The indicator, which provides a comprehensive snapshot of the health of the US labor market, is typically published on the first Friday of each month.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.