AUD/USD Price Analysis: Bulls make a stand at the edge of the abyss

AUD/USD bulls step in below weekly lows ahead of NFP.
The bears need to take back control from a 50% mean reversion area or face a bullish surge into the close of the week.

Ross J Burland FXStreet

As per the prior analysis, AUD/USD Price Analysis: Bulls could be encouraged at this juncture above 0.6790, the downside case was a risk and that scenario played out. The following illustrates the market structure that has been carved out ahead of Friday's showdown event in the US Nonfarm Payrolls.

It was stated that a break of 0.6790 as per the weekly chart could see a significant downside breakout:

AUD/USD live update

The price moved in on the prior support and has stalled awaiting the outcome of the US data later tonight from the US session. However, the head and shoulders offer a bearish outlook for the end of the week as bears push bulls to the edge of the abyss. A continuation to the next round number, 0.6700, could be just days away.

AUD/USD H4 chart

From a shorter-term perspective, the price actually pierced the prior weekly lows which is a bearish feature on the chart. The accumulation has started to take place with the bulls probing the 0.68 round number. A correction to the prior lows around a 50% mean reversion could be on the cards for the day ahead. If the bears commit there, then this could be the last show of the bulls for the foreseeable sessions ahead.

On the other hand, the week could end on a bullish note with the price targeting above 0.6850 to close the week down at an equilibrium:

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.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.

XRP rises alongside peers as ETFs attract inflows

Ripple (XRP) is gaining upside momentum, trading above $1.40 at the time of writing on Wednesday. The remittance token is rising in tandem with major crypto assets, including Bitcoin (BTC), which has crossed above the pivotal $70,000 level, and Ethereum (ETH), which is holding above $2,000.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Bittensor extends recovery despite retail demand slump

Bittensor, a leading Artificial Intelligence token, is aging up above $190 at the time of writing on Wednesday. Steady price increases characterise the broader crypto market, with Bitcoin holding above $71,000 and Ethereum above $2,000.