Nick Nasad
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AUD/USD: Will Short-Term Downswing Be Reversed Post NFP?

The AUD/USD set up in a downward channel prior to the NFP report, but it will be interesting to see what the reaction to the weak NFP report will be on the USD.

  • The initial reaction has been USD negative, and the pair was already starting to carve out a short term bottoming action prior to the news release.
  • Afterwards the pair managed to push above 0.8915 the short term resistance (which had acted as support earlier in the week).
  • A hold above this level is a sign we may have a short term upmove.
  • The downward supporting resistance trendline got broken as a result of the NFP release, but the pair retraced its initial move quickly (the volatile nature of NFP price reaction).
  • Let's see if the pair heads back into the direction of the initial reaction, and if it can manage to push towards the highs (0.8950, 0.8975, 0.90) seen during the recent downswing.