AUD/USD just got rejected from a range resistance that’s been solid since the start of the year!
Will more AUD bears jump in to drag the pair lower?
We’re taking a closer look at the 4-hour chart:
AUD/USD 4-hour Forex Chart by TradingView
In our Daily Broad Market Recap, we talked about increasing tensions between Iran and Israel inspiring a risk-averse trading environment.
This meant gains for the safe haven U.S. dollar ahead of today’s U.S. NFP report release while the commodity-related Australian dollar took hits.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. and Australian dollars, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/USD, which saw a sharp upswing on Thursday, hit a roadblock just above the .6600 psychological area and R2 Pivot Point line. Looks like the bears also stepped in near a resistance zone that’s been successfully limiting AUD/USD’s gains since January!
Extended losses for the Aussie could drag AUD/USD to the R1 (.6550) area near the simple moving averages and the mid-range zone. And, if we see fresh anti-risk or pro-USD catalysts, then AUD/USD could make its way back to its .6500 support levels.
Don’t discount a possible breakout though! If AUD/USD starts poppin’ up bullish candlesticks or starts to consistently trade above the R2 previous resistance line, then we may see a retest of the .6650 March highs or a visit to the .6700 previous inflection point.
Traders will be watching the U.S. NFP report for clues on the U.S. dollar’s next trends so you should too!