The AUD/USD pair is heading lower after recent events pushed US demand higher.
How far will the CMD pair go before the bulls extend their multi-week uptrend?
The 4-hour time frame can give us clues:
AUD/USD Forex 4 Hours Chart by TradingView
In case you missed it, an upbeat jobs report from the US tempered Fed rate cut expectations and lifted the US dollar higher across the board.
However, the RBA’s relative lack of easy monetary policy compared to peers and China’s recent monetary and fiscal stimulus measures keep the Australian dollar supported among ‘risk’ currencies.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on the US and Australian dollars yet, it’s time to check the economic calendar and stay up to date with daily fundamental news!
AUD/USD, which found resistance at 0.6940 levels, is showing more bearish candles and may head towards lower inflection points.
We are looking at the 0.6775 – 0.6825 area as potential support as it is in line with the previous resistance area. Notably, it is also located near the S1 pivot point line (.6815), the 100 and 200 SMA, and the 38.2% and 50% Fibonacci retracement levels on the 4-hour time frame.
Will AUD/USD find enough buyers at the support area?
Keep your eyes open for green candles and continued trading above the S1 and 50% Fib levels, which could help attract enough buyers to push AUD/USD to October highs or even to new monthly highs.
On the other hand, a sharp pullback or other decline can attract more sellers. Watch for continued trading below the simple moving averages, which could create bearish momentum that could drag AUD/USD to the 0.6700 psychological levels.
Whatever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier market triggers when trading this. good luck!