Bears look to China data for cues

Fibo Quantum

  • AUD/USD bears seeking a downside extension with critical data coming up. 
  • Chinese data and the US Nonfarm Payrolls will be key events for the pair on Friday. 

As per the prior analysis, AUD/USD Price Analysis: High forex vol points to continuation to weekly support, the price remains on a bearish trajectory as follows:

In the daily chart above, the weekly lows are illustrated with 0.6990 eyed as a potential target on a break of 0.7030. For the day ahead, the bears need to break the hourly support as follows:

AUD/USD H1 chart

The bears are taking control below the 0.7120 key level with the price staying below the 21-EMA:

Bears will want to see a break of the 0.7080 support before fully engaging, but the Chinese data could be the catalyst. With that being said, there are prospects of a trapped market into the NFP data today if the price fails to break lower on disappointing Chinese data. 

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