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  • AUD/USD witnessed a modest pullback on Friday and snapped four days of the winning streak.
  • The intraday downfall found some support near the 0.7130 confluence region, at least for now.

The AUD/USD pair came under some selling pressure on the last trading day of the week and snapped four consecutive days of the winning streak. A fresh wave of the global risk-aversion trade was seen as one of the key factors that drove some flows away from the perceived riskier Australian dollar.

The pair, for now, seems to have stalled its recent bounce from the key 0.7000 psychological mark stalled near a resistance marked by the 61.8% Fibonacci level of the 0.7346-0.7005 corrective slide. Meanwhile, the intraday downtick managed to find some support near the 0.7130 confluence region – comprising of 100-hour SMA and the 38.2% Fibo. level.

The mentioned area should now act as a key pivotal point for short-term traders. A convincing breakthrough might prompt some technical selling and turn the pair vulnerable to slide back below the 0.7100 mark. The downward momentum could further get extended and drag the AUD/USD pair back towards the 23.6% Fibo. level, around the 0.7085-80 region.

On the flip side, the 50% Fibo. level, around the 0.7175 region, now seems to act as immediate resistance. Some follow-through buying might push the AUD/USD pair back above the 0.7200 mark, back towards retesting the 61.8% Fibo. level, around the 0.7215 area.

AUD/USD 1-hourly chart

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Technical levels to watch