The AUD/USD currency pair conjured a long-awaited rebound to trade at 0.6935 following the latest geopolitical events in the US. The pair have been struggling to mount a serious bull-run since the start of 2018 with the greenback enjoying a strong economic backing coupled by a positive general market atmosphere.

However, the bearish run appeared to end on Friday with the pair bouncing off 0.6900 to advance high above 0.6944 before pulling back to 0.6935 amid strong resistance.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair continues to trade at the back of what has been a long-running period of trade tensions between the US and China.

The ‘Aussie’ as the AUD is popularly known in the world of forex trading relies on the performance of the Chinese economy due to Australia’s reliance on the Asian economic superpower for exports.

Things have not been good since early 2018 and this is evident based on the currency pair’s trajectory. And going into next week, traders will look at what the US Jobs report has to offer to try to gauge the AUD/USD next movement.

AUD/USD Technical Analysis (the 60-min Chart)

When you apply this to a wider time frame chart, it implies that the pair could be forming a consolidation, which could trigger a breakout. And looking at the RSI indicator down below, the AUD/USD appears to have recently come close to reaching overbought levels following today’s gains.

But the pullback near the end suggests that the pair lacked the momentum to advance further amid strong resistance at a key level. The bull will target profits at around 0.6944 while the bears will hope the pullback takes the AUD/USD down towards 0.6922.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the pair appears to be still held within a descending channel, which suggests that the bears still maintain control. The 100-day and the 200-day moving average lines are also above, which further supports a bearish bias.

And after applying Andrews’ pitchfork, the pair seems to be centrally pegged within the median line in the descending channel, which means that the current movement could continue for a while before a reversal can be realized.

In summary, the AUD/USD currency pair enjoyed a rare bull-run on Friday after US Treasury yields fell to 2.16% a new 20-month low. However, the pair lacked the momentum to add to the gains above the previous highs after facing strong resistance at a key level.