AUD/USD: bearish below 0.7735 targetting 0.7474/30?

AUD/USD is currently on the offer in slow market environment that is consolidating last week's events in sterling and nonfarm payrolls disappointments.

AUD/USD has broken below the 0.76 handle and meeting a strong support level and previous resistance, in an extension of the supply from 0.7691 previous high. The dollar was, however, finishing September in a weak technical position until various Fed officials talked up the economy and the idea of a Nov or Dec rate hike that has been supporting the dollar and while the nonfarm payrolls was disappointing in missing the expected number it was still a solid report and has propped up the greenback

"Before the jobs report, the Dollar Index rose to almost 97.20, the highest since late-July," explained analysts at Brown Brothers Harriman, adding, "Note that the top of the Bollinger Band was near 96.55.  The jobs data sent the Dollar Index to 96.40.  That met the 38.2% retracement objective (~96.50) of the rally from the September 30 low near 95.35.  The 50% retracement is at 96.25 (which corresponds to the five-day moving average).  The 61.8% retracement is 96.05."

AUD/USD levels

AUD/USD  is bearish below 0.7712/35, but a break through there opens 0.7836 April high, as suggested by analysts at Commerzbank, noting, that directly below the market lies the 2016 support line at 0.7474/30. "This remains a critical break down point to the 0.7146 May low." 

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