AUD/USD looks poised to make another run at 0.7900 again

Technical Analysis

Author: Justin Low | audusd

The pair is trading at 0.7876, a little off the highs at 0.7880 today

The aussie continues to be underpinned following Friday's US jobs report, as risk sentiment in the market is improving - and by two folds in fact.

The Goldilocks jobs report and the fact that the trade war rhetoric is cooling down (Australia got an exemption on the tariffs btw) is giving reason for equities and risk assets to put up a bit of a rally today.

But the key test for AUD/USD is around the 0.7900 area where there is a cluster of resistance points. A test of the same level earlier in the month failed at the 38.2 retracement level @ 0.7894 and buyers will have to get above that for the rebound to continue.

Although the pair is higher on the day, sellers are equally as poised close to the 0.7900 as Mike also pointed out here. There is a relatively decent sized option sitting at 0.7950 which could attract price action should we see further dollar weakness on the day, and more sellers are also lurking in the area too.

However, for the moment it's baby steps and 0.7900 is the next level of interest for buyers and sellers in the 'tug of war'.

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