AUD/USD Price Analysis: Bears seeking a deep correction

AUD/USD is back in the hands of the bears as the US dollar hardens.
Bulls need to defend the 38.2% Fibonacci or face being trapped back to prior structure.

Ross J Burland FXStreet

AUD/USD has given back a sizeable amount of the bullish impulse over these past few sessions and the bulls need to commit to the purpose above a critical 38.2% Fibonacci retracement of the daily impulse.

The following illustrates the market structure on both a daily and 30-min time frame.

Daily chart

The daily chart shows that the price is under pressure having rallied way beyond the prior highs. a pullback was inevitable, but the questions whether the bulls will commit to where they need to.

A break of the 38.2% Fibo and support structure opens risk to a deeper 61.8% Fibo retracement and restest of the prior highs.

30 min chart

From a lower time frame perspective the outlook is illustrated with the price already being rejected by the prior support that is now acting as resistance at a key hour pivot point.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

160.80: Japanese Yen remains close to nearly two-year lows

USD/JPY inches lower after four days of gains, trading around 160.60 during the Asian hours. The USD/JPY pair surged to 160.80 the previous day, marking its highest level since July 2024 and significantly heightening speculation that Japanese authorities could soon intervene to support the struggling Yen.

Australian Dollar remains in positive territory after paring recent gains

AUD/USD pares its daily gains, remaining in the positive territory and trading around 0.7010 during the European hours. The pair appreciated as the Australian Dollar received support from prevailing hawkish sentiment surrounding the Reserve Bank of Australia’s policy outlook.

Gold drops to daily lows near $4,200

Gold struggles to attract buyers on Thursday, trading closer to the $4,200 mark per troy ounce. The yellow metal adds to Wednesday’s pullback and slips back to multi-day lows in response to the stronger US Dollar following the Fed’s hawkish hold on Wednesday.

Crypto Today: Bitcoin, Ethereum and XRP pare losses on increasing bets of Fed tighter monetary policy

Cryptocurrency prices are broadly moderating downwards on Thursday, as market participants assess the impact of the Federal Reserve’s (Fed) hawkish monetary policy stance.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.