AUDUSD sellers push the price back toward key MA, retracement and swing area support

I

In the new trading day in Australia, the release of the employment report is expected to significantly impact prices. Knowing the key technical levels can help map out the potential market reactions. On the downside, the next critical area is between 0.6708 and 0.6713, corresponding with the rising 100-bar moving average on the 4-hour chart, the 38.2% retracement of the move up from the June low, and a swing area dating back to mid-May.

A break below this area could lead to another multi-technical zone coming into play, involving the 200-bar moving average on the 4-hour chart, the 50% retracement, and a rising trend line, all of which range between 0.6675 and 0.6686. Sellers would need to push below these levels to gain more confidence for a further decline.

Conversely, a stronger employment report could drive prices up towards the swing high from last Monday’s trading at 0.6760. Surpassing this level might lead traders to target last week’s high of 0.67978, just below the natural resistance at 0.6800. Beyond that, the topside channel resistance level at 0.6806 (and rising) would be eyed.

Thus, the technical roadmap is set; the question remains, what will the fundamental data reveal to the market?

This article was written by Greg Michalowski at www.forexlive.com.