AUD/USD Review: Bullish move once again rejected near 0.7440 supply zone

Haresh Menghani FXStreet

• Friday’s goodish rebound from closer to YTD lows quickly fizzles out.
• Subdued commodity prices fail to provide any fresh bullish impetus.
• Traders even shrugged off the ongoing USD retracement slide.

The AUD/USD pair surrendered early modest gains and is currently placed at the lower end of its daily trading range, around the 0.7415-10 region.

The pair struggled to build on Friday's strong rebound from closer to YTD lows and once again met with some fresh supply near the 0.7440 horizontal zone, which has been acting as a stiff resistance over the past one-week or so.

The US Dollar continues to be weighed down by the US President Donald Trump's comments on Friday, criticizing the recent greenback strength, albeit renewed trade war fears kept a lid on any strong follow-through up-move for the China-proxy Australian Dollar.

Meanwhile, a mildly weaker tone around commodity space also did little to provide any meaningful boost to commodity-linked currencies - like the Aussie and further collaborated to the pair's modest retracement of around 30-pips from Asian session tops.

Technical Analysis

Looking at the broader picture, the pair has been oscillating within a broader trading range over the past six weeks or so and any meaningful recovery attempts have been sold into, clearly indicating additional near-term bearish potential.

Moreover, the pair's inability to register any meaningful recovery and a consolidative price action below the key 0.7500 psychological mark further reinforce the expectations that the near-term downfall might still be far from over.

However, it would be prudent to wait for a decisive break through the mentioned range before positioning for the pair's next leg of directional move.

Spot rate: 0.7412
Daily High: 0.7438
Trend: Sideways

Resistance
R1: 0.7438 (current day swing high)
R2: 0.7478 (50-day SMA)
R3: 0.7500 (psychological round figure mark)

Support
S1: 0.7387 (100-period SMA H1)
S2: 0.7344 (S1 daily pivot-point)
S3: 0.7315-10 (recent swing lows)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.