AUD/USD just got rejected from a variety resistance that’s been solid because the start of the yr!

Will more AUD bears jump in to pull the pair lower?

We’re taking a better have a look at the 4-hour chart:

AUD/USD 4-hour Forex Chart by TradingView

In our Each day Broad Market Recap, we talked about increasing tensions between Iran and Israel inspiring a risk-averse trading environment.

This meant gains for the refuge U.S. dollar ahead of today’s U.S. NFP report release while the commodity-related Australian dollar took hits.

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. If you happen to haven’t yet done your fundie homework on the U.S. and Australian dollars, then it’s time to envision out the economic calendar and stay updated on day by day fundamental news!

AUD/USD, which saw a pointy upswing on Thursday, hit a roadblock just above the .6600 psychological area and R2 Pivot Point line. Looks just like the bears also stepped in near a resistance zone that’s been successfully limiting AUD/USD’s gains since January!

Prolonged losses for the Aussie could drag AUD/USD to the R1 (.6550) area near the easy moving averages and the mid-range zone. And, if we see fresh anti-risk or pro-USD catalysts, then AUD/USD could make its way back to its .6500 support levels.

Don’t discount a possible breakout though! If AUD/USD starts poppin’ up bullish candlesticks or starts to consistently trade above the R2 previous resistance line, then we may even see a retest of the .6650 March highs or a visit to the .6700 previous inflection point.

Traders will likely be watching the U.S. NFP report for clues on the U.S. dollar’s next trends so you must too!