AUD/USD Set to Continue Downtrend Amid Improving US Unemployment Claims

AUD/USD – Technical Analysis for Binary Options Brokers

United States – Unemployment Claims

On Thursday, at GMT 1:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.

Binary options investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.

Last week, the US unemployment claims figure came out at 261,00 and the forecast for this week is set at a decrease to 244,000.

Australia – Private Sector Credit

On Friday, at GMT 1:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data, which measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

Binary options traders consider the private sector credit to be an important fundamental indicator of the Australian economy as borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.2% and the forecast for this month is currently set 0.5%.

Trade Recommendation for the AUD/USD

AUD/USD - Technical Analysis for binary Options Brokerse of

Although the AUD/USD remained range bound over the last few weeks, it did penetrate above the 0.7730 level last week, but failed to close above this resistance. Instead, the AUD/USD formed a bearish outside bar on March 21, which pushed the price towards the 23.6% Fibonacci retracement level.

As the US unemployment claims figure is expected to reduce by a considerable number, from 261,000 last week to 244,000 this week, we believe it would likely have a bearish fundamental impact on the AUD/USD. Hence, if the AUD/USD price closes below the support level around 0.7600, which is near to the 23.6% Fibonacci level, it would likely attract additional bearish momentum in the market.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the AUD/USD with their binary options brokers in Australia as soon as the price closes above the 0.7600 level on the daily timeframe.

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