The pair of the Australian dollar with the US dollar, after establishing the maximum of this year at the end of February at the level of 0.8000, began to fall. After six months, the AUDUSD rate was only 0.7100.
- bullish pin bar on the monthly chart
- upward divergence on the daily chart
- payrolls on friday 03.09
The last days of August undoubtedly belonged to the demand, as we will notice on the monthly chart above. An bullish pin bar appeared, suggesting further strengthening of the Australian currency against the USD.
When we look at the daily chart – here too there are signs of a bullish bias on this pair. After staying in the downtrend channel for a while, the price broke through the resistance of the channel and headed north.
Last week, after J. Powell’s speech at the symposium in Jackson Hole, the Friday candle formed a bullish engulfment, and today we observe the breakout from this formation. There is an upward divergence on the MACD oscillator.
The nearest demand zone starts at the level of 0.7380 and it may be the first target for buyers.
Today (01.09) 14:30 ADP employment data, the so-called “small payrolls” – and on Friday at the same time the most important event for the financial markets of the week – payrolls. We can undoubtedly expect increased volatility on the dollar pairs, which should be taken into account in trading plans.
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