- AUD/USD is trading 0.10% higher on Monday.
- Traders are looking to see if the reversal at the end of last week can be sustained.
AUD/USD 1-hour chart
AUD/USD fell quite heavily towards the end of last week after a strong non-farm payroll result. The pair had been looking pretty toppy anyway and the strong jobs number was all it took to tip the pair over the edge. At the beginning of the week, the pair has found some support at 0.7140 area and is now settling down at 0.7160.
Looking closer at the technicals on the chart and the price rejected the 61.8% Fibonacci extension to the pip. The resistance was also at an interesting Fibonacci zone (23.6%) as it happened to fall at the price wave low too.
The key area on the downside is now the wave low at 0.7140. If this level breaks the pair could accelerate to the next support at the purple line near 0.7120. Beyond that, there is a more important support zone at the consolidation low near 0.7063.
The indicators are actually not looking too bearish. This is because of the bounce at the aforementioned support area. The Relative Strength Index has dipped under the 50 area again after briefly popping its head above the midpoint. The MACD histogram is green but crucially the signal lines are both under the zero level.
Overall, this is a key moment for AUD/USD. Traders are looking to see if this is the big reversal that the market has been waiting for. On Thursday the Australian government releases the nations latest jobs data. If it is anything as good as the US NFP result then the pair could creep back up.
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Additional levels
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