The Australian Dollar (AUD) slid down against the US Dollar (USD) on Tuesday, decreasing the price of AUDUSD to less than 0.7300 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.

AUD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7283. On the downside, a support can be noted around 0.7225, the trendline support ahead of 0.7178 the major horizontal support and then 0.7141, the 61.8% Fib level support as demonstrated in the given below daily chart.

On the upside, a hurdle can be noted near 0.7351, the trendline resistance level ahead of 0.7374, another trendline resistance and then 0.7483, the major horizontal resistance in the given above chart. The technical bias shall remain bullish as long as the 0.7252 support area is intact.

The United States Jobless Claims

The number of people filing for unemployment benefits fell last week, a sign the labor market was holding firm despite tensions between the United States and it’s trading partners that have led to tit-for-tat tariffs.

Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 210,000 for the week ended Aug. 18, the Labor Department said on Thursday.

It was the third straight week of declines for claims, which have dropped so low that economists have scrambled for explanations. In July, claims fell to their lowest level since 1969 even though the workforce is much larger than in prior decades.

Economists polled by Reuters ahead of Thursday’s report had forecast claims rising to 215,000 in the latest week.

Generally speaking, if the number of claimants filing for jobless claims is greater than expected,  it is considered as an alarming sign for the country’s economy hence indicates a bearish market for the US Dollar (USD) and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.