Are the Australian Dollar bears on track of snapping the two-day bearish streak?

January 8, 2021 - 2 weeks ago
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The Australian Dollar bears eyed the US$0.7725 support level on Thursday, as the bearish sentiment increased.

The market dropped to its lowest intraday level in two-day after inking in a US$0.7725 which has followed by going into a consolidation phase after the New York close.

On the data front, which was mostly ignored, Aussie Trade Balance for November deteriorated, and Building Permits improved while the U.S. Institute for Supply Management (U.S. ISM) said its index for non-manufacturing activity in the U.S. rose to 57.2 in December from 55.9 in November after the given forecast was expected 54.5.

After a tumultuous start to 2021, market participants are now awaiting a comprehensive December jobs report scheduled on Friday.

The December Non-Farm Payroll is expected to show that the country added just 60K new positions in the month, although the unemployment rate is foreseen steady at 6.8%.

Viewing the technical standpoint, the Relative Strength Index (RSI) 3-day ‘lookback’, the bearish divergence remains evident which could pressure the decline to cut the 50-midway point, to which would support a negative signal, while the Moving Average Convergence Divergence (MACD) holds to a positive signal.

A decisive break of US$0.7725 is expected to trigger the decline to a potential target of US$0.7570-75, while the resistance is located minor at US$0.7785.

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