AUD/USD just slid to fresh monthly lows after breaking below a key consolidation zone.
Will the pair pull back up to the broken support zone?
Here’s what’s showing up on the 4-hour chart:
AUD/USD 4-hour Forex Chart Faster with TradingView
“Risk” and gold-linked currencies like the Australian dollar took hits this week as the U.S.-Israel war with Iran dragged on, with no clear end in sight yet.
At the same time, the U.S. dollar kept flexing its muscles. Safe haven demand stayed strong, Treasury yields pushed higher, and fading Fed rate cut expectations gave the Greenback steady support.
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 has been trending lower since mid-March and recently broke below the .6950 support zone, slipping closer to the .6900 psychological handle.
Right now, price is printing hesitation candles around that area, which makes sense since it also lines up with the S2 (.6905) Pivot Point.
That setup keeps a pullback scenario in play. The .6950 former support and the .7000 psychological level are the first areas Aussie bulls may target on a bounce.
Watch how price behaves around the broken .6950 zone. Bullish candles or hesitation there could point to a classic break and retest before AUD/USD tries to push to fresh monthly lows.
If that bounce never shows up, though, then AUD/USD could keep sliding without much of a pause. In that case, the next downside targets sit around .6850 and the S3 (.6824) Pivot Point.
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.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on AUD/USD’s trend retracement opportunity. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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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.
