Graphics: AUD/USD is testing a key resistance area

AUD/USD is back at the familiar inflection point that acted as resistance in late January!

Will the pair turn lower from the previous area of ​​interest?

Or AUD/USD will break through its pattern faster than we can learn to say “Marmot asked me?”

In case you missed it, the US dollar tumbled on the charts earlier this week as Fed speculation dragged the US dollar lower.

Meanwhile, the Australian dollar rose several points thanks to a wave of risk-on markets.

However, that was earlier in the week. With gold struggling to regain bullish momentum above $5,000 and traders bracing for weak US data, the tide could easily turn against the commodity-linked currency.

Remember that movements in the direction and conditions of market price volatility are usually driven by fundamental factors. If you haven’t done your funda homework yet Australian dollar and US dollarthen it’s time to look at the economic calendar and stay up to date with the daily top news!

AUD/USD is struggling to break above 0.7100, which is not surprising given that the psychological level matches the January highs and this week’s R1 pivot point around 0.7075.

A few more bearish candles and a sustained trade below .7050 could open the door for a pullback to the .7000 mid-range area, if not to the .6925 range support area near the S1 pivot point and 100 SMA.

However, the bulls may just catch their breath. If new buying emerges and momentum builds again, AUD/USD could approach the R2 pivot point around 0.7139 and potentially even test the psychological level of 0.7200.

Whichever bias you trade, remember to practice proper risk management and watch for higher-level catalysts that can affect overall market sentiment.

Disclaimer:
Please note that the technical analysis content provided here is for informational and educational purposes only. It should not be construed as trading advice or offering any particular direction. Technical analysis is only one aspect of a comprehensive trading strategy. The technical setups discussed are meant to highlight potential areas of interest for other traders to observe. Ultimately, all trading decisions, risk management strategies and their resulting results are the sole responsibility of each individual trader. Trade responsibly.

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