Intraday Market Analysis – AUD Holds Onto Major Support
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AUDUSD treads water above support
The Australian dollar recovered as last month’s jobless rate fell to 5.5%. The pair is currently in an extended consolidation above the key daily support at 0.7690.
Buyers’ failure to hold could send the Aussie back to 0.7600 which is critical to the integrity of the uptrend. 0.7815 acts as a gatekeeper after a rebound stopped short of pushing higher.
Only by clearing this resistance would buyers commit more chips to the table. A bullish breakout may resume the rally with 0.7890 as the first target.
CADJPY goes into temporary correction
The Canadian dollar bounced back after the job market showed the third straight month of gains. The strong bearish momentum below the psychological level of 90.00 was an indication of profit-taking.
The RSI has recovered to the neutrality area following the initial dip. Though it would be too soon to call a reversal as the price action has built support on its way up. 89.60 is the closest one.
Further down 89.05 is important to maintain the bullish bias. A rally above 90.60 may prompt more trend followers to jump in.
SPX 500 consolidates above key support
US equity markets remain subdued as risk appetite takes a backseat. The S&P 500 has pierced through the 30-day moving average, adding pressure on the buy-side.
The price action is again testing the demand area around 4040 after a short-lived rebound. A bearish breakout could trigger a new wave of sell-off to 3900. On the upside, 4185, former support turned into resistance is a major obstacle before the rally could carry on.
In the meantime, sideways actions within a 140-point range may last into the weekend.
