FxWirePro: AUD/USD gains some ground but remains sensitive to Middle East tensions

• AUD/USD firmed on Wednesday  as improving market sentiment, driven by hopes of a possible de-escalation in the Iran conflict, supported risk currencies like the Australian dollar.

•  Investors are increasingly reacting to geopolitical developments, with comments from Donald Trump indicating that attacks on Iran could potentially end within 2–3 weeks..

• Adding to the cautious optimism, unconfirmed reports suggest that Iran’s president may be open to a ceasefire. However, the conflict remains ongoing, keeping uncertainty elevated and limiting stronger risk rallies.

·  Looking ahead, Australia’s February trade balance data is due Thursday, with markets expecting a surplus of around AUD 2.58 billion.

•. Meanwhile, key U.S. releases include February retail sales, expected to rise by 0.5% month-on-month, and the March nonfarm payrolls report on Friday, forecast at +60K. These will be crucial in shaping the U.S. dollar outlook..

•  Immediate resistance is located at 0.6933 (Daily high), any close above will push the pair towards 0.6998( 38.2%fib).

•  Support is seen at 0.6845(50%fib) and break below could take the pair towards 0.6800(Lower BB)

Recommendation: Good to sell around 0.6940 with stop loss of 0.7000 , and target price of 0.6850