AUD/USD is popping decrease after latest occasions pushed U.S. demand greater.
How low will the comdoll pair go earlier than the bulls lengthen its multi-week uptrend?
The 4-hour timeframe might give us clues:
AUD/USD 4-hour Foreign exchange Chart by TradingView
In case you missed it, an upbeat jobs report from the U.S. cooled down Fed charge reduce expectations and lifted the U.S. greenback greater throughout the board.
That stated, the Reserve Financial institution of Australia’s (RBA) relative lack of dovishness in comparison with its friends and China’s latest financial and monetary stimulus measures are holding the Australian greenback supported among the many “danger” currencies.
Keep in mind that directional biases and volatility circumstances in market value are usually pushed by fundamentals. If you happen to haven’t but carried out 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 day by day basic information!
AUD/USD, which discovered resistance on the .6940 ranges, is exhibiting extra bearish candlesticks and could also be headed for decrease inflection factors.
We’re eyeing the .6775 – .6825 space as a potential help because it traces up with a earlier resistance zone. Notably, it’s additionally close to the S1 (.6815) Pivot Level line, 100 and 200 SMAs, and the 38.2% and 50% Fibonacci retracement ranges within the 4-hour timeframe.
Will AUD/USD discover sufficient consumers on the help zone?
Maintain your eyes peeled for inexperienced candlesticks and constant buying and selling above the S1 and 50% Fib ranges, which might assist attract sufficient consumers to push AUD/USD again to its October highs and even new month-to-month highs.
However, a sharper downswing or one other leg decrease might draw in additional sellers. Look out for sustained buying and selling beneath the SMAs, which can create a bearish momentum that would drag AUD/USD right down to the .6700 psychological ranges.
Whichever bias you find yourself buying and selling, don’t neglect to observe correct danger administration and keep conscious of top-tier market catalysts when buying and selling this one. Good luck!