Finish-of-month flows and an absence of recent catalysts helped push AUD/USD again up from its November lows.

We’ve noticed a possible resistance zone that may kickstart one other downswing for the comdoll pair!

Right here’s what we’re taking a look at within the 4-hour timeframe:

AUD/USD 4-hour Foreign exchange Chart by TradingView

Main U.S. greenback counterparts just like the Aussie obtained a breather this week as uncertainty over the Fed’s subsequent price cuts and end-of-month flows helped drag the Dollar decrease.

Reserve Financial institution of Australia (RBA) Governor Bullock additionally went below the highlight this week to say that core inflation stays too excessive to contemplate near-term rate of interest cuts, which elevated the demand for the Australian greenback.

Do not forget that directional biases and volatility circumstances in market value are sometimes pushed by fundamentals. In case you haven’t but accomplished your homework on the U.S. and Australian {dollars}, then it’s time to take a look at the financial calendar and keep up to date on each day basic information!

AUD/USD, which has been in a downtrend since October, revisited its November lows close to .6450 but additionally bounced again as much as the .6500 psychological deal with.

How excessive can AUD/USD fly earlier than the bears step again in?

We’re taking a better take a look at the .6550 deal with, which isn’t too removed from the R1 (.6545) Pivot Level line, the 4-hour chart’s 100 SMA, and a vary resistance zone that’s been round all month.

Bearish candlesticks under .6550 might set AUD/USD up for one more swing decrease that will take the pair again to the .6500 mid-range zone if not the .6450 November lows.

Alternatively, bullish candlesticks and sustained buying and selling above the resistance space might result in a longer-term bullish reversal that will take AUD/USD to the .6650 space of curiosity or .6700 November highs.

Good luck and good buying and selling this one, dealer buddies!