- Breaks through 0.6755-60 supply zone on upbeat Aussie employment details.
- The intraday set-up seems in favour of bullish traders, though warrant some caution.
The AUD/USD pair got a strong boost during the Asian session on Thursday and rallied back closer to the 0.6800 handle in reaction an unexpected downtick in the Aussie unemployment rate.
Given the overnight late rebound from weekly lows, a sustained move beyond a confluence resistance near the 0.6750-55 region was seen as one of the key triggers for bullish traders.
The pair now seems to have found acceptance above 50% Fibonacci level of the 0.6895-0.6671 recent slide and seems poised to build on the momentum further beyond weekly tops.
This coupled with the fact that technical indicators on 4-hourly/daily charts have again started gaining bullish momentum further reinforces the intraday constructive set-up.
However, oscillators on the 1-hourly chart are already flashing slightly overbought conditions and might turn out to be the only factor holding investors from placing aggressive bullish bets.
Hence, it will be prudent to wait for some consolidation or a modest pullback before traders again start positioning for any further appreciating move towards 0.6840 supply zone.
Meanwhile, any meaningful slide now seems to attract some dip-buying interest and help limit the downside near the mentioned resistance breakpoint – around mid-0.6700s.