AUD/USD is hanging out near a key inflection point in the 4-hour time frame!
Is the pair gearing up to extend a longer-term trend?
Here’s what we’re seeing!
AUD/USD 4-hour Forex Chart by TradingView
The Australian dollar took a hit yesterday after Uncle Sam’s inflation report backed the Fed’s wait-and-see stance, reinforcing the higher-for-longer rate outlook and boosting demand for the U.S. dollar across the board.
But that was yesterday. In the days ahead, global trade headlines and Australia’s upcoming jobs report could shift momentum back toward the comdoll.
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 cruising with higher highs and higher lows since April and is now chilling just above the .6500 psychological level.
As you can see, that zone lines up with the 200 SMA on the 4-hour chart and the S1 Pivot Point at .6506. It is also sitting pretty close to the ascending channel support that has held firm since mid-April.
If we start seeing green candles and signs of momentum from around .6500, bulls could jump back in and push the pair toward .6600 or even new monthly highs.
But if price breaks cleanly below the S1 Pivot or struggles to stay above .6500, AUD/USD could slip toward the S2 Pivot Point at .6441 or revisit the .6400 low.
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.
