- US dollar was dumped against almost all major currencies yesterday after the FOMC meeting minutes revealed concerns of the fed regarding the recent US dollar rise.
- Australian employment change data released by the Australian Bureau of Statistics missed the forecast of 20K and registered a decline of -29.7K.
- Aussie dollar was unfazed by the outcome and was seen trading higher during the Asian session.
- GOLD and SILVER might gain traction after the FOMC meeting minutes and could rise in the near term.
The Aussie dollar traded higher against the US dollar yesterday and broke an important resistance area yesterday. Earlier during the Asian session, a critical release was scheduled in Australia i.e. the employment data. The data was not on the encouraging side, as the employment change missed the mark and participation rate also dropped. The Aussie dollar reacted to the downside initially, but later managed to recover all lost ground. The AUDUSD pair is trading around the sessions high as of writing. There is a trend line on the hourly chart of the pair, which is acting as a resistance and protecting the upside. Moreover, it is also coinciding with the 1.236 extension of the last drop from the 0.8832 high to 0.8732 low. So, there is a substantial resistance around the 0.8850-60 area.
Intraday Support Level – 0.8820
Intraday Resistance Level – 0.8860
- Overall, as long as the pair stays above the 100 moving average it might clear the trend line.
- Only a break and close above the mentioned trend line would call for more upside moving ahead.
If the AUDUSD pair fails to overtake the 0.8860 level, then there is a chance of a move back towards the 100 hourly moving average. The 200 hourly MA is also sitting just below the same, which increases the importance of 0.8780-60 support area.
As we all know that commodities such as GOLD and SILVER were seen struggling during the past couple of weeks, but this can change any time now. We need to consider the Fed’s remark in the FOMC meeting minutes which could spark some downside in the US dollar and might help the precious commodities in the near term. There is a trend line formed on the hourly chart of SILVER, which might act as a hurdle for buyers moving ahead. Currently, it is trading around the previous swing high, and if it manages to clear it, then it might test the mentioned trend line moving ahead. The 1.236 extension of the last drop from the $17.43 high to %17.01 low is also coinciding with the highlighted trend line.
Intraday Support Level – $17.20
Intraday Resistance Level – $17.55
- A break and close above the $17.43 level might take SILVER towards $17.55 level.
- As long as SILVER stays above the mentioned support area more gains cannot be denied.
On the downside, there are several support areas, including the 100 and 200 hourly moving averages. SILVER sellers will need a reason to take it lower in the short term.
"Patience is the key for success"
Oliver Miller is one of the best financial analyst with 18 years of online trading experience
New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
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