AUDUSD Waiting For The Job Data From Australia
17 April 2024
In today's analysis, we turn our attention to the AUDUSD pair, where a bearish scenario has emerged, presenting an intriguing opportunity for selling in the midterm and long term. However, it's crucial to approach this analysis with caution, as overnight job data from the Australian market could potentially alter the dynamics of this instrument significantly.
Technically, the situation presents a clear sell signal. A prominent flag formation, delineated by blue lines, has materialized, and the price has breached this formation to the downside. This breach serves as a compelling signal to sell, with the potential target resting on the orange horizontal support. This target lies considerably lower, approximately 100 pips, and the likelihood of reaching this support level appears to be quite high, reinforcing the bearish sentiment.
Nevertheless, it's essential to acknowledge the potential impact of positive data from the Australian job market. Should this data induce a bullish momentum, we may witness a shift in the prevailing sentiment. In such a scenario, observing the price action as it re-enters the flag formation and subsequently breaks above the red downtrend line could serve as a strong signal to initiate long positions. However, it's imperative to recognize that the likelihood of this bullish scenario materializing is currently limited.
In conclusion, while the technical setup suggests a bearish outlook for the Australian dollar to American dollar pair, traders must remain vigilant in light of the impending job data from Australia, which has the potential to introduce significant volatility and alter the market dynamics.