AUD/USD Price Analysis: The pair is testing the strong resistance zone at 0.72
|- AUD/USD is trading 0.38% higher on Thursday as the strong rally continues.
- There is now a major hurdle at 0.72 the bulls will need to overcome.
AUD/USD 4-hour chart
AUD/USD has been on a great run of late moving from 0.7002 to 0.7190 in six sessions. The price could now struggle as it has hit a major resistance zone that has been tested six times on this 4-hour chart. There could be the perfect catalyst for a break during Friday's session as the latest non-farm payroll figures are set to be released.
Looking closely at the chart the aforementioned level also confluences with the 50% Fibonacci retracement ratio. This could add credence to the resistance and mean a move lower is on the cards. If there is to be a potential break the next 61.8% Fib is at a good level which provided some support in the past too.
On the downside, 0.7135 could be a sticky point but the main support area remains at the 0.70 psychological level.
The Relative Strength Index has a bearish formation at the moment called a bearish failure swing. This is when the market is making lower highs but the indicator makes a higher high and can often move into overbought territory. The MACD is looking bullish which is unsurprising considering the recent pace of the move higher.
Overall, the path of least resistance remains to be to the downside and the NFP result tomorrow could be pivotal.
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Additional levels
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