The AUD/USD pair dropped in the last hours even despite the fact that the Dollar Index resumed its sell-off. The pair was traded at the 0.6962 level at the time of writing. In the short term, the currency pair is trapped within a chart formation. Only escaping from this range could bring new trading opportunities.
Fundamentally, the Australian data came in mixed today. The Unemployment Rate remained at 3.9% , whereas traders had expected a potential drop to 3.8%. Meanwhile, the Employment Change came in at 60.6K versus 25.0K expected ny analysts. In the short term, the AUD/USD pair seems undecided as the US data was worse than expected. Also, the Dollar Index started to drop after an unexpected 75bps Federal Funds Rate hike.
AUD/USD Minor Range!
As you can see on the H1 chart, the AUD/USD pair is trapped between the 0.6950 and 0.6989 levels. The price dropped below the uptrend line but it registered only a false breakdown below 0.6950, signalings that the buyers are still in the game.
In the short term, it could challenge the uptrend line. Coming back and stabilizing above the uptrend line may signal further growth.
AUD/USD Forecast!
Jumping, closing, and stabilizing above 0.6989 could activate further growth and could bring new long opportunities with a potential upside target at the 0.7035 former high.
On the other hand, staying below the uptrend line and making a new lower low, a valid breakdown below the 0.6950 static support could activate more declines and could bring new short opportunities.
