• AUD/USD dipped on Friday as investors reassessed geopolitical risks in the Middle East.
• Market sentiment was pressured after Hezbollah reportedly rejected a renewed U.S.-brokered ceasefire proposal, highlighting the challenges facing diplomatic efforts to reduce tensions in the region.
•Renewed hostilities this week, including exchanges between Iranian and U.S. forces, have lifted Brent crude above $90 a barrel, putting it on track for a weekly gain
•Attention is now turning to the U.S. May non-farm payrolls report, due later on Friday. Economists surveyed by Reuters expect employment growth of 85,000 jobs, and the data could significantly influence expectations for Federal Reserve policy.
•The Reserve Bank of Australia has already hiked three times to 4.35% and Governor Michele Bullock seems content to watch and wait for now.
• Immediate resistance is located at 0.7146 (38.2%fib), any close above will push the pair towards 0.7173(SMA 20).
• Support is seen at 0.7066(Lower BB) and break below could take the pair towards 0.7045(50%fib).
Recommendation: Good to sell around 0.7130 with stop loss of 0.7220 and target price of 0.7090
