"The US Nonfarm Payroll report was a big miss, triggering a sharp downward move in the greenback against all of its major rivals, as the world's largest economy added just 98,000 jobs, against market's expectations of 180K. "
— Valeria Bednarik, FXSreet
Pair's Outlook
The prevalence of bears on this trading session has pushed the Aussie downwards through the weekly S2 and closer to a support cluster formed by the 100-day SMA, the lower Bollinger band and the neckline of a double top pattern. Today's NFP data, however, has not introduced any significant corrections. There are two possible scenarios for the pair. On the one hand, a breach of the neckline might set the Aussie for a further decline. On the other hand, the above-mentioned support cluster might provide strong support, restricting the pair's southward motion, and, thus, result in a U-turn. Technical oscillators favour the latter, as they continue to approach the oversold area.
Traders' Sentiment
Traders' market sentiment has turned bearish with 59% of positions being short. Moreover, 51% of all pending orders are to sell the Aussie.
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