**AUD/USD & GBP/USD Price Action Setups Ahead of US Non-Farm Payrolls**
*Based on the article by Justin Bennett at Forex Factory, with additional insights incorporated.*
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As global financial markets look ahead to the release of the US Non-Farm Payrolls (NFP) data, both the Australian Dollar (AUD/USD) and the British Pound (GBP/USD) currency pairs present important technical setups that traders should watch. Understanding the price action in these markets is crucial, especially as the NFP often drives significant liquidity and volatility in Forex markets.
This analysis closely examines the technical outlook for both pairs in the days leading up to the NFP, the significance of recent moves, and possible trading scenarios. Furthermore, we provide broader context by referencing current fundamental factors from both the Reserve Bank of Australia (RBA), Bank of England (BoE), and US Federal Reserve.
## Technical Outlook: AUD/USD
The AUD/USD pair has experienced notable movements, shaped by evolving market expectations around monetary policy and global risk sentiment. As of the days before the NFP report, several key observations can be made:
### Key Levels and Chart Structure
– **Resistance:** The 0.6700 region stands as a significant resistance barrier for the pair. This level acted as a ceiling in previous months, and recent price action has re-tested but not convincingly broke above this area.
– **Support:** Immediate downside support exists at 0.6600, with a stronger floor at 0.6570. A sustained move below this zone could accelerate selling pressure.
– **Trend:** The pair is trading within a broad range, with neither bulls nor bears decisively in control over the medium term. However, short-term momentum recently favored the US Dollar.
### Price Action Insights
– AUD/USD rallied to test the aforementioned resistance but failed to break through, suggesting that traders are cautious ahead of the NFP event.
– Multiple failed attempts to close above 0.6700 increase the significance of this resistance, possibly encouraging sellers to participate more actively near this zone.
– The failure to sustain higher levels resulted in a pullback toward the mid-range of the past few weeks.
### Scenarios to Watch
– **Bullish Breakout:** If the pair can close firmly above the 0.6700 resistance, particularly on the daily chart, it could clear a path towards further gains. Next upside targets could include 0.6760 and, beyond that, the psychological 0.6800 mark.
– **Bearish Breakdown:** On the flip side, a decisive move below 0.6570 would likely expose the next support at 0.6500, opening the door for a more extended correction.
– **Range Continuation:** Given ongoing uncertainties, a continued range-bound environment between 0.6570 and 0.6700 is also plausible, at least until the market receives fresh direction from the US payrolls data.
## Technical Outlook: GBP/USD
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