AUD/USD Price Analysis: Recovery needs acceptance from 0.6700 and US employment data
- AUD/USD extends recovery from weekly low during the first positive day in three.
- Key DMAs challenge Aussie buyers amid bearish MACD signals.
- US NFP, 0.6560 can challenge sellers even if the immediate support breaks.
AUD/USD clings to mild gains around intraday high of 0.6636 as it consolidates the weekly losses ahead of the key US employment report. In doing so, the Aussie pair prints the first daily gains while extending the early Asian session’s rebound from a four-month-old support line heading into Friday’s European session.
While a below 50.00 RSI (14) line joins the aforementioned support line to back the latest rebound, the 100-DMA and 200-DMA challenges the AUD/USD bulls around 0.6685 and 0.6700 in that order amid bearish MACD signals.
Hence, the AUD/USD pair is likely to remain sidelined, which in turn amplifies importance of today’s US Nonfarm Payrolls (NFP), as well as headlines from China.
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That said, a clear upside break of 0.6700 will aim for the 38.2% Fibonacci retracement of February-May downside, near 0.6725. However, multiple tops marked near the 50% and 61.8% Fibonacci retracements, respectively near 0.6810 and 0.6890, may restrict the Aussie pair’s further advances.
On the flip side, a daily closing below the rising trend line from March, near 0.6600 at the latest, isn’t an open invitation for the AUD/USD bears as early June swing high of near 0.6560 can test the downside before highlighting the odds of witnessing a fresh yearly low, currently near 0.6460.
AUD/USD: Daily chart
Trend: Limited recovery expected