AUDUSD might be in for a continuation of its climb, as the pair is approaching the bottom of its ascending channel visible on the 4-hour chart. Price could find support at the .7200 major psychological mark, which lines up with other inflection points.

Not only does it coincide with a former resistance zone that might hold as a floor, but it also lines up with the dynamic support at the moving averages. The 100 SMA just crossed above the 200 SMA to suggest that the path of least resistance is to the upside or that support is more likely to hold than to break.

If that’s the case, price could make its way back up to the top of the channel around .7350 or the mid-channel area of interest close to .7300.

Stochastic is already indicating oversold conditions or exhaustion among sellers, so turning higher would confirm that buyers are taking over. RSI appears to be pulling back up without reaching the oversold area, suggesting that bulls are eager to charge.

There are no major reports due from Australia today, so the dollar might be the main mover for this pair. Leading US jobs indicators namely the ISM manufacturing PMI and JOLTS job openings report are lined up, and weak results might lead to some downside for the dollar ahead of the NFP.

Tomorrow, the ADP non-farm employment change and FOMC minutes release might bring more volatility for the dollar. Take note, however, that the Fed seemed more hawkish than expected in their December announcement, so an optimistic FOMC minutes might bring some upside for the US currency.

Also, the NFP report itself is projected to show a much stronger pace of hiring in December, which would be nearly twice as much as the job gains in the previous month.