- The Australian dollar displayed a notable decline in the early stages of Thursday's trading session, approaching a pivotal juncture represented by the 0.65 level.
- This level carries substantial significance, having previously served as resistance and now expected to act as support.
- The currency pair finds itself situated within a broader consolidation range, spanning from the 0.65 level as its lower bound to 0.69 as the upper boundary.
In the event of a breakdown below the 0.65 level, it is conceivable that the Australian dollar may target the 0.6350 level. The size of the current candlestick formation suggests potential difficulties in achieving an immediate rebound. However, it is crucial to consider the impending release of the Non-Farm Payroll data scheduled for Friday, an event that is poised to exert significant influence on the US dollar. Consequently, the jobs report has the potential to introduce substantial volatility into the market, which could potentially lead to a bounce in the Australian dollar.
Should a rally occur from the current levels, the first notable resistance lies at the 0.66 level. Subsequently, a breakthrough above that level may pave the way for a target at the 0.67 level, which aligns closely with fair value within the broader consolidation region. This has been the case for some time.
Jobs Numbers on Friday
The ultimate outcome hinges on the forthcoming jobs report, which will undoubtedly shape the trajectory of the Australian dollar. A breakdown below the 0.65 level could signify a broader strengthening of the US dollar across various currency pairs, not solely limited to the Australian dollar. Consequently, the 0.65 level remains a critical point of interest, given its historical significance.
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In conclusion, the AUD/USD pair experienced a substantial decline, positioning it near the pivotal 0.65 level. This level, previously a source of resistance, is now expected to function as support. The currency pair operates within a broader consolidation range, with implications contingent on the outcome of the upcoming Non-Farm Payroll announcement. The 0.65 level's significance is amplified by the impending release of job-related data, which is poised to introduce substantial market volatility. The week's conclusion is anticipated to provide greater clarity regarding the Australian dollar's trajectory, with the 0.65 level serving as a focal point of interest.
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