AUDUSD broke a one-month-old bullish channel after witnessing a downbeat Aussie Wage Price Index. The south-run also gained support from the softer jobs report for July. Even so, a convergence of the 200-SMA and 50% Fibonacci retracement of the July-August upside, near 0.6900, restricts the immediate downside of the pair. It’s worth noting, however, that the RSI (14) is near the oversold territory and suggests limited declines before the bounce. Should the quote breaks the 0.6900 round figure, the monthly bottom surrounding 0.6870 and the 61.8% Fibonacci retracement level near 0.6850 could entertain the bears before directing them to the mid-July swing high close to 0.6800.
Meanwhile, corrective pullback needs to cross the stated channel’s support line, around 0.6970 by the press time, to convince the buyers. Following that, the weekly resistance line near the 0.7000 threshold could try stopping the upside moves. In a case where AUDUSD bulls cross the 0.7000 hurdle, the month-start peak around 0.7050 might become the last defense of bears before directing the prices towards the monthly high of 0.7136.
Overall, AUDUSD has signaled a bearish trajectory after the downbeat employment numbers and is ready to reverse the bounce off the yearly low marked during July.
