Daily Forex Analysis: AUDUSD Non-Farm Payrolls Figures = U.S Dollar Strength 7/8/2017
On Friday the Non-farm Payrolls figure exceed expectations with +209k actual compared to the forecast of +182k. This caused all the major currencies to weaken against the U.S Dollar.
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The Australian Dollar since reaching the highs around 0.8063 has sold off. The sell off is mainly due to the RBA talking down the currency and now with the stronger employment figures in the U.S. Since the highs, the Australian Dollar fell to 0.7890 and is now sitting at a critical level.
Areas of ultra-high volume act as a magnet, and we see the Australian Dollar just hovering around this level. The price chart below shows the 1-hour chart of the Australian Dollar, and we witness ultra-high volume on an up bar. The next bar was an up bar, and we saw continued strength, but price returned to the area of ultra-high volume. The majority of the time since the ultra-high volume price has gravitated back to the area of ultra-high volume.
This is where we are currently sitting now. There are two price levels that we need to keep an eye on. The high and low price of the ultra-high volume bar. These are triggers where we will look for trading opportunities. To the high side 0.7977, we’ll look for Signs of Strength above this level and 0.7918 we’ll look for Signs of Weakness below this level.
Above 0.7977 the next critical level will be 0.8060 and below 0.7918 is 0.7876. The Australian Dollar is looking weaker as we see a series of lower highs and lower lows. After a significant move down the Australian Dollar has retraced back up on No Demand and we could see it test our trigger at 0.7918 shortly. There is trend alignment in the smaller time frames, 1 min, 5 min and 15 min. Would like to see the 30 min and 60 min charts turn to the downside and look for trade opportunities below our lower trigger line.
Have an excellent trading day
Professional Investor and VSA Expert
Author of Supercharge Your Trading & Investment Account Using Wyckoff / Volume Spread Analysis