- Summary:
- AUD/USD is headed for an uptrend after breaking out of the bullish flag. Bullish employment numbers have fueled the rise.
AUD/USD extended yesterday’s gains to hit a 2-week high. On Thursday’s session, the pair was up by 0.34% to trade at $0.7824 after bullish employment numbers from Australia. According to the Australian Bureau of Statistics, the country created 88,700 jobs in February compared to January’s 29,100 entities. The figure is also higher than the forecasted 30,000 jobs.
Investors are now looking forward to the preliminary release of Australia’s retail sales on Friday. In January, the reading missed the beat by coming in a point lower than the predicted 0.6%. Analysts expect a soft rise in retail sales as the economy is still in recovery.
AUDUSD technical outlook
For the better part of March, the 50-day exponential moving average has remained above the 20-day one. Over the past five sessions, both EMAs have been moving alongside the prices to indicate a sideways trading bias. However, on Thursday’s session, the crossover occurred. The prices are above the two EMAs, a sign that the rallying will continue.
Besides, the currency pair has formed a bullish flag that started earlier last week. In today’s session, it has broken out of the pattern on the upside. It is likely to go through a short period of price consolidation at its current resistance level of about $0.7827. However, if it manages to break the resistance, its next target will be $0.80, which is a 3-year high reaches in February. On the flip side, the bears may test this week’s resistance level of $0.7745 and the month’s lowest point at $0.7620.
AUD/USD Chart
