Originally published by AxiTrader
The Aussie dollar had a nice bounce overnight.
After again getting hit by European traders, a process that knocked it down to a low around 0.7744 early in the evening before the Aussie bounced back as copper surged, oil rallied hard, and as trader get set to challenge this downtrend that comes in around 0.7815.
And we might see that challenged as soon as 11.30 am today. That's when the ABS releases its latest jobs data for Australia. All indications - ANZ job ads, NAB Business survey, general momentum in the jobs market - are that we will see another solid print.
Indeed the Reuters poll says economists are forecasting an increase of 21,000 jobs in March with the unemployment rate of 5.5%.
That's likely solid enough to see the Aussie test resistance overhead. But can it break?
That's an interesting question and one that will be aided by the price action of copper in the short term. It's gains overnight support the Aussie where it is and indeed likely helped lift it from the doldrums yesterday and into the early evening. Further gains and a decent print on employment and the Aussie will be off and running.
Naturally a surprise miss or a negative read would hurt the Aussie.
But for the moment support in the mid 77 cents region has been reaffirmed again and the bulls will wnat to test topside again should they be given the chance.
Levels on the 4 hour charts are as follows.
Resistance is last night's high of 0.7797, the week's high at 0.7809, and the trendline at 0.7815. Above that it's 0.7860/65.
Support is 0.7745/50, 0.7730 and 0.7711/16.
Have a great day's trading.