AUDUSD Stays Vulnerable Under 0.7800 Despite Fall in the Aussie Jobless Rate

AUDUSD Price Analysis – February 18

The AUDUSD pair is gaining upside traction against the US dollar from the prior days plunge to 0.7724 level. The Aussie opened higher at 0.7749 during Thursday’s European session but stays vulnerable under the 0.7800 level. Australia’s jobless rate dipped to 6.4% in January, versus expectations for a drop to 6.5% from December’s 6.6%.

Key Levels
Resistance Levels: 0.8136, 0.7980, 0.7800
Support Levels: 0.7725, 0.7650, 0.7557
AUDUSD Long term Trend: Bullish
AUDUSD is preparing to break out of the MA 5 and MA 13 convergence zone as seen on the daily chart. Within the hurdles, AUDUSD has put in a session low of 0.7746 level and an intraday high of 0.7774 level trading inside a narrow range. A convincing break higher would expose the recent high of 0.7805 level.

However, the MA 5 is now trending south and may limit its advance, indicating bearish pressure. As such, a sustained move above 0.7800 level looks unlikely. Nevertheless, the path of least resistance appears to be on the higher side given the established support levels beneath 0.7725 level.
AUDUSD Short term Trend: Bullish
The AUDUSD pair has broken above a falling price channel on the four-hour time frame and looks to be targeting the 0.7800 level. A failure to scale the technical hurdle will likely invite selling pressure, yielding a drop toward Wednesday’s low of 0.7724. All things being equal, the exchange rate could continue to consolidate during the following trading session.

The potential target for bearish traders would be near known support at 0.7650 level. The AUDUSD pair is only bearish while trading below the 0.7725 level, key support is found at the 0.7700 marks. The AUDUSD pair is only bullish while trading above the 0.7725 level, key resistance is found at the 0.7800 and 0.7980 levels.

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