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.

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