Forex Chart Of The Day: AUDUSD Sellers Targeting 0.6400

By the strength of the USD we can make a calculated guess that the market is pricing in another rate hike by the Federal Reserve. What does this mean for the price of AUDUSD?

Watch the video to learn more…

AUDUSD Sellers Targeting 0.6400

The Australian Dollar (AUD) has been under pressure against the US Dollar (USD) recently, and this downtrend could potentially continue, with AUDUSD sellers setting their sights on the key support level of 0.6400.

A key factor underpinning the greenback’s recent strength is the latest data release from the United States’ Job Openings and Labor Turnover Survey (JOLTS). The most recent report revealed an unexpected surge in job openings, which came in above the previous 9.75 million to 10.10 million. This is a significant increase and indicates a healthy and robust labor market in the US, a critical aspect of a nation’s overall economic health.

These stronger-than-expected employment figures are leading some market participants to speculate that the Federal Reserve may be considering an additional interest rate hike. If realized, this could cause further strengthening of the USD. Market sentiment appears to be pricing in this possibility, putting additional pressure on the AUDUSD pair.

Should the Federal Reserve confirm market suspicions and raise interest rates, we could see the AUDUSD prices trade even lower, potentially down to the key support level of 0.6400.

Why is this significant? A support level is a price level where the asset’s price tends to stop falling due to an influx of demand or buying interest. In this case, 0.6400 represents a major support level for AUDUSD, and breaching this level could signify a more extended bearish phase for the pair.

Looking ahead, we will be closely tracking any indications or rhetoric from the Federal Reserve about possible interest rate changes. For the AUDUSD sellers to reach their target of 0.6400, watch for a combination of continued USD strength and AUD weakness, underpinned by diverging monetary policies and economic performances between the two nations.

AUDUSD

The price on the chart has traded through multiple technical levels and some observations included:

• Price is trading below range supporting lows of 0.6575.
• Price retested the resistance zone before trading lower, offering sellers an opportunity into the bearish trend.
• Traders looking to sell this forex pair should wait for a pullback on a lower time frame before looking to enter.
• Sellers will be targeting the key level of support at 0.6400.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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