AUD/USD has been quite corrective after an impulsive bullish move towards the resistance area of 0.7750 to 0.7850. AUD has been gaining momentum since the positive Employment Change report published last month that helped the currency sustain the impulse and stable bullish gains. Today the Australian AIG Service Index report was published showing a slight increase to 52.0 from the previous figure of 51.7, which did not quite help the currency break above the 0.7850 resistance area. On the USD side, ahead of the NFP, Average Hourly Earnings and Unemployment reports due to release on Friday, the ADP Non-Farm Employment Change report is going to be published today. The US non-farm employment is expected to increase by 191k in comparison with the previous figure of 190k. The US Unemployment Claims are expected to decrease by 241k compared to the previous figure of 245k, Final Services PMI is expected to be unchanged at 52.4, Natural Gas Storage is expected to show a greater deficit of -221B from the previous figure of 112B, and Crude Oil Inventories are expected to show a greater decline of -5.2M from the previous figure of -4.6M. As of the current scenario, the forecasts of economic reports from the US seem to be quite mixed, but any positive outcome will lead to further bearish pressure in the pair ahead of the high-impact economic reports to be published tomorrow.
Now let us look at the technical view, the price is currently residing just below the 0.7850 resistance level with some indecision daily candles this week. The price is currently correcting itself, but any daily close above 0.7850 will lead to further bullish move towards the 0.8050 resistance level in the coming days. On the other hand, if the price manages to show some impulsive bearish pressure due to upcoming high-impact economic reports from the US, then we will be looking forward to sell with a target towards the 0.7550 support area. As the price remains below 0.7850, the bearish bias is expected to continue further.
