2025-12-18 01:27:00
AUD/USD recently busted through a descending trend line to signal a reversal from its downtrend.
Are more buyers about to hop in on this pullback?
Take a look at these correction levels on the 4-hour chart!
AUD/USD 4-hour Forex Chart by TradingView
The Aussie was on a steady climb throughout the last week of November to the first half of this month, mainly driven by hawkish RBA expectations and the dovish Fed narrative.
However, the rally was cut short around the .6700 major psychological mark, forcing AUD/USD to retreat close to the 38.2% Fibonacci retracement level.
Are any of the Fibs ready to hold as a floor?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Australian dollar and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Reversal candlesticks around current levels, which are also near the 100 SMA dynamic inflection point, could suggest that buyers are ready to jump in and sustain the climb back to the swing high near R1 (.6690) then R2 (.6730).
A larger correction could still reach the 50% Fib just above the .6550 minor psychological mark or the 61.8% level closer to the broken trend line that could now hold as support.
A break below these levels, however, could indicate that Aussie bears and/or dollar bulls are regaining the upper hand, potentially sending AUD/USD to downside targets at S4 (.6500) then S5 (.6460) next.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
