AUDUSD Analysis 20.12.2018

The Aussie continues to decline as the US dollar for a second day after the mild rise started this weekend

Where it opened the day at 0.7106, recording the lowest price of 0.7089 and the highest price of 0.7124

Australian labor market data showed that the unemployment rate rose to 5.1% from October's reading of the month of October and expectations of 5.0%, the lowest since mid-2011, with the Employment Change Index rising to 37.0 thousand versus 28.7 thousand, exceeding expectations of about 20.0 thousand.

US current account reading showed that the deficit widened to $ 125 billion in line with expectations versus $ 101 billion in the second quarter, ahead of the release of housing market data with the release of the Existing Home Sales Index, which may reflect a 0.4% drop to Rose to 5.20 million from 1.4% at 5.22 million last October.

The Fed's monetary policy makers at the Federal Open Market Committee's meeting on December 18-19 in Washington raised interest rates by 25 basis points for the fourth time this year to between 2.25% and 2% .50%, which was expected by analysts in the markets.

Technical Analysis

The AUDUSD traded with strong negativity yesterday to complete the formation of a head and shoulders pattern illustrated in the image, to get an additional negative stimulus that supports expectations for a continuation of the bearish trend as the price approaches our first target at 0.7080, awaiting further downside visit to the previously recorded low at 0.7020 As a next station.

Therefore, the bearish trend will remain dominant during the coming sessions, noting that a break of 0.7140 could push the price to test the 0.7277 areas before any new attempt to decline.

Moving averages above the price are trading in negative pressure on the price towards the support areas 0.7020. While the Stochastic has reached the saturation area of ​​the buy in negative signal for continued low price

The trading range for today is expected among the support at 0.7020 and resistance at 0.7140

The general trend for today is bearish