Chart: AUD/USD Heading for Deeper Retracement Levels?

AUD/USD falls after recent events pushed US demand higher.

How low will the comdoll pair go before the bulls extend their multi-week uptrend?

The time period of 4 hours can give us clues:

AUD/USD 4 Hour Forex Chart from TradingView

In case you missed it, an upbeat US jobs report cooled Fed rate cut expectations and lifted the US dollar higher broadly.

That said, the relative lack of dovishness of the Reserve Bank of Australia (RBA) compared to its peers and China’s recent monetary and fiscal stimulus measures keep the Australian dollar supported among the “risky” currencies.

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on the US and Australian dollars yet, then it’s time to check the economic calendar and keep up with the daily fundamental news!

AUD/USD, which has found resistance at the .6940 levels, is showing more bearish candlesticks and could be headed for lower inflection points.

We view the .6775 – .6825 area as possible support as it aligns with a previous resistance area. Notably, it is also near the S1 line (.6815) Pivot Point, 100 and 200 SMA and the 38.2% and 50% Fibonacci retracement levels in the 4-hour time frame.

Will AUD/USD find enough buyers in the support zone?

Keep an eye out for green candlesticks and steady trading above the S1 and 50% Fib levels, which could help attract enough buyers to push AUD/USD back to its October highs or even new monthly highs.

On the other hand, a steeper decline or another leg lower could attract more sellers. Watch out for sustained trading below the SMA, which may create bearish momentum that could pull AUD/USD down to the psychological .6700 levels.

Whichever bias you end up trading, remember to practice proper risk management and be aware of top market catalysts when trading it. Luck!