The Australian Dollar (AUD) inched lower against the US Dollar (USD) in recent trading sessions, decreasing the price of AUDUSD to the a new weekly low of 0.7473, ahead of Janet Yellen’s speech. The technical bias remains bearish because of a break in the major daily support level at the 0.7490 region.

Technical Analysis

As of this writing, the pair is being traded around 0.7480. A major daily support can be noted around 0.7447, a short term horizontal support ahead of 0.7450, the psychological number and then 0.7440, a key trendline support. A break and hourly closing below the 0.7448 level shall incite renewed selling interest, validating a move towards the 0.7400 support zone.

On the upside, a hurdle can be noted near 0.7547, an immediate trendline resistance ahead of 0.7556, the confluence of two trendlines as demonstrated with red and pink colors in the given above hourly chart.  A break and hourly closing above the 0.7556 trendline resistance shall incite renewed buying interest, validating a move towards the 0.7600 resistance zone and potentially towards the high of 0.7750. The technical bias shall remain bullish as long as the 0.7400 support area is intact.

Trade Idea

Last Non-farm payroll was significant higher than expected, giving strength to USD against major currencies. Considering the overall technical and fundamental outlook, selling the pair can be a good strategy if the statement of Janet Yellen comes out dovish and vice versa.

What Assets to Trade after Janet Yellen speech?

In addition to AUDUSD, trading GBPUSD, USDCAD, NZDUSD, Gold and Silver can be a profitable idea as these assets react sharply after the speech of Janet Yellen.