WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge:  AUD/USD bullish stance remains strong despite big jobs miss

Posted by Edward Moya on Oct 15, 2015 12:03:15 AM

The Australian dollar initially fell 43 pips to .7296 after the Australian Bureau of Statistics released an unexpected weak jobs report. The slide however was short-lived and the currency pair rallied to fresh session highs. Employment weakened 5,100 from August, significantly worse than expected gain 9,600.

Other key data points include the unemployment rate remaining steady at 6.2% and the participation rate dropped to 64.9% from 65%. Regardless of the weak employment print, the RBA might remain on hold at its next meeting in November. The key to further RBA cuts may remain if we see more weakness from China.

The AUD/USD daily chart shown above displays the strong bullish rebound that has been in place since September 24th is tentatively finding major resistance from the 100-day SMA. If we see bullish momentum rally above the .7400 zone, we could see price surge towards .7495. It is around that area that we could see price form a bearish butterfly pattern. Point D is targeted with the 161.8% Fibonacci expansion level of both the X to A and B to C legs. If valid, we could see price reverse back towards the long-term trendline shown in red. If the pattern is invalidated, we could see price ultimately target the 200-day SMA.

If we see bearish momentum return here, we could see price find support from the .7150 region. Major support will come from the .6950 level.

The trade: Buy AUDUSD at .7335, with a stop loss at .7285 and a take profit at .7485. The risk/reward ratio is 1:3

Edward J Moya

Chief Technical Strategist

World Wide Markets Online Trading


Topics: RBA, AUDUSD, Reserve Bank of Australia, aud, Australian Dollar


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!