AUDUSD – Bears Test Key Support Ahead of US Labor Report Release

The AUDUSD remains firmly in the red, testing key support at 0.6170 (the 2022 low) after a brief recovery was repeatedly rejected above the declining 20DMA, forming a double bull trap on the daily chart.

Bearish daily studies continue to exert downside pressure, although further resistance in this zone should be expected, as indicators are entering oversold territory.

In the longer term, the Australian dollar could face additional pressure if the Trump administration moves forward with its promised tariffs on China. In the near term, all eyes are on the US labor report (due later today), which will provide new direction for the market.

A sustained break below 0.6170 would open the way to test the Fibonacci support at 0.6099 (76.4% retracement of 0.5509/0.8087) and expose the psychological 0.60 level.

On the upside, the falling 10DMA provides immediate resistance at 0.6209, followed by more significant barriers at 0.6246 (20DMA) and 0.6302 (the January 6 recovery spike). A break above the latter could ease the larger bearish pressure and allow for a stronger correction.

Res: 0.6209; 0.6246; 0.6302; 0.6330
Sup: 0.6170; 0.6099; 0.6040; 0.6000