18.05.201711:47 Forex Analysis & Reviews: Fundamental Analysis of AUD/USD for May 18, 2017

Recently, AUD/USD has shown a good amount of bullish pressure after a bounce of 0.7330 support area. Today, AUD also had a good amount of bullish pressure after positive economic reports on Australia's Employment Change which were better than expected. The Employment Change report showed an increase of 37.4k which was expected to be at 4.5k. Besides, Unemployment Rate in Australia declined to 5.7% from 5.9% earlier, the forecast was made with a flat reading. The positive economic reports from Australia gave some boost to AUD. Nevertheless, it failed to keep it up, giving in to the USD pressure. On the USD side, today we have Unemployment Claims report which is expected to increase to 240k which previously was at 236k. Philly Fed Manufacturing Index is expected to decrease to 19.9 which previously was at 22.0. Australia has already presented strong data. On the other hand if US reports reveal negative figures, then we might see AUD gaining more against USD in the coming days.

Now let us look at the technical chart. The price is currently showing indecision due to equal pressure from AUD and USD. Recently, AUD/USD has formed a Double Top Pattern where it is currently going to retest the Neckline of the pattern at 0.7500 level. The price is currently being hold by 20 EMA dynamic resistance. If that could not hold, the price is likely to reach 0.7500 horizontal resistance before the price continues its bearish trend again towards 0.7160 support level. As the price remains below 0.7500, the pair is set to follow the bearish bias.