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  • AUD/USD has erased gains seen following Aussie jobs data as expected. 
  • The 4-hour chart indicates scope for a deeper pullback. 

The AUD/USD pair has reversed the bounce from 0.6290 to 0.6305 seen following the release of the Aussie jobs data at 01:30 GMT and could slide further, as the 4-hour chart is reporting a rising wedge breakdown. 

A rising wedge comprises rising trendlines connecting higher lows and higher highs. However, trendlines are of converging nature, a sign of buyer exhaustion. Hence, a breakdown is widely considered a bearish reversal sign and often invites stronger selling pressure. 

The wedge breakdown, coupled with the risk-off tone in the global markets, suggests scope for a re-test of the 200-candle average at 0.6221. 

Alternatively, acceptance above the 4-hour chart lower high of 0.6348 would weaken the bearish case and shift risk in favor of a rise to 0.6444 (April 14 high). 

4-hour chart

Trend: Bearish

Technical levels