AUD/USD is back at a familiar inflection point that acted as resistance in late January!
Will the pair turn lower from the previous area of interest?
Or will AUD/USD bust through its pattern faster than we can learn how to say, “Tití Me Preguntó?”
AUD/USD 4-hour Forex Chart Faster with TradingView
In case you missed it, the U.S. dollar got clobbered on the charts earlier this week as dovish Fed speculation dragged the Greenback lower.
The Australian dollar, meanwhile, picked up a few pips thanks to a wave of risk-taking across markets.
That was earlier in the week, though. With gold struggling to build bullish momentum above $5,000 and traders bracing for weak U.S. data, the tide could easily turn against the commodity-linked currency.
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 Australian dollar and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/USD is struggling to extend its climb above .7100, which is not too surprising given that the psychological level lines up with January’s highs and this week’s R1 Pivot Point around .7075.
A few more bearish candles and sustained trading below .7050 could open the door for a pullback toward the .7000 mid range area, if not the .6925 range support zone near the S1 Pivot Point and the 100 SMA.
Still, bulls may be just catching their breath. If fresh buying shows up and momentum turns higher again, AUD/USD could make a run toward the R2 Pivot Point near .7139, and potentially even test the .7200 psychological level.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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