In a noteworthy turn of events, the AUD/USD pair experienced significant gains in the past week, bolstered by the impressive Australian employment report for June.
The currency pair managed to break free from a four-day losing streak, showcasing the most substantial daily upswing in a week as it approached Thursday’s European session. Currently, the AUD/USD is hovering around the intraday high of 0.6840, recording a remarkable 0.90% increase as of the latest press time.
The Australian employment report for June revealed positive figures in terms of Employment Change and Unemployment Rate, indicating a favorable economic outlook. However, the Participation Rate saw a slight decline, and Part-Time Employment numbers exhibited a slide for the same period.
From a technical standpoint, the AUD/USD pair effectively bounced off the 200-Exponential Moving Average (EMA), with the MACD signals indicating a bullish trend and the RSI (14) line presenting an optimistic outlook.
These factors suggest a potential uptrend towards the resistance confluence at 0.6900, which encompasses tops marked in June and July. This region is also significant due to its association with the 61.8% Fibonacci retracement level of the pair’s downward movement observed between February and May.
Moreover, the RSI (14) has risen above 50.0 and is nearing the overbought area, adding to the potential challenge for the AUD/USD bulls to breach the 0.6900 round figure.
However, surpassing the 0.6900 resistance level appears less probable, and if it does occur, the currency pair may aim to overcome the psychological magnet at 0.7000 and target the mid-February swing high of approximately 0.7030.
On the other hand, a daily close below the 200-EMA level around 0.6750 does not immediately imply an advantage for the AUD/USD bears. An ascending support line, originating from May 31 and currently situated near 0.6695, will serve as an additional obstacle for bearish movements.
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