AUD/USD is finding resistance at the top of its range, giving selloff forex signals visible on the 4-hour forex time frame. At the same time, stochastic is moving down, which means that there’s enough selling pressure to push price down.
A strong selloff could last until the bottom of the range near the .9220 levels. A weak one could only last until the mid-range area of interest near the .9300 major psychological support.
Shorting at market with a tight stop above the previous spikes or the .9450 handle and a target of .9200 could yield a high reward-to-risk ratio but it might be prudent to adjust the stop to entry once price tests the .9300 area.
AUD/USD Forex Signals and Forecast
Earlier today, fundamental forex signals also favored an Aussie short as the jobs data came in below expectations. The report showed a 4.8K drop in hiring while the previous month’s reading was revised down to show a mere 10.3K increase. This was just enough to keep the jobless rate steady at 5.8% instead of rising to the projected 5.9% figure.
Meanwhile, the US is scheduled to print its retail sales report today and possibly show stronger gains in consumer spending. Recall that jobs growth has been relatively stable so far and might lead to Americans spending more rather than keeping their hands in their pockets. Headline retail sales might see a 0.5% uptick while core retail sales are slated to come in at 0.4% higher.
Stronger than expected data from the US economy could renew demand for the US dollar against the Australian dollar and push the pair down to the middle of the range during the New York trading session. On the other hand, bleak data from the US would show that hiring gains are not translating to consumer spending, which might be negative for the dollar.
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