AUD/USD breaks below trendline at 0.72, but takes support at cloud top (0.7171) and edges higher.
- The pair spiked higher on upbeat Australia jobs data which showed employment change and headline data at +71.4k beating expectations at -10.0k.
- Aussie soared post data, taking the pair to 0.7334, but has eased therefrom to currently trade at 0.7293.
- There is skepticism as to the accuracy of the better than expected jobs data, market is definitely short, and revisions if any, can be seen only after a month.
- AUD/USD has major resistance at 0.7387 (converging trendline and 38.2% Fib of 0.8160 - 0.6907 fall), also the pair still trades below the 200 DMA at 0.7452 and breaks above which can see the tide turn.
- Key support is at 0.7240/50 - where it was trading before booming jobs data, and then at 0.72 (trendline).
- Our short call yesterday was stopped out after the spike post jobs data, the pair though hit lows of 0.7172 (falling short of our target at 0.71).
Recommendation: We would still look to sell rallies in the pair around 0.73, placing stops at 0.7390, TP: 0.72/0.7150/0.71
