**AUD/USD Weekly Technical Report and Extended Analysis**
*Credit: Based on analysis from ActionForex.com*
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The AUD/USD currency pair has continued its downward momentum, extending the correction that began earlier this year. The pair’s movement reflects the ongoing strength of the US Dollar and persistent concerns about the Australian economy as well as the global financial landscape. This article covers the technical outlook for AUD/USD, dives into the key factors influencing its trajectory, and supplements with insights from other reputable sources to provide a thorough view of the pair’s medium- to long-term prospects.
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**Current Technical Overview**
– **Short-term movement**: The AUD/USD has extended its correction from the high seen in late December 2023 at approximately 0.6870. The pair remains under pressure and failed to recover above key resistance levels.
– **Last week’s performance**: Price action remained subdued, unable to form a strong base for a sustained rebound. Sellers controlled the market, pushing AUD/USD toward new local lows.
– **Prominent support and resistance levels**:
– Major resistance is found at 0.6643 and subsequently at 0.6713.
– Immediate support lies at the 0.6476 level. If broken, the next target is around the 0.6361 zone, representing the November 2023 low.
– **Momentum indicators**: Daily and weekly momentum remain in negative territory, with moving averages continuing to trade above current prices, signaling ongoing bearish sentiment.
– **Moving averages**:
– 20-day EMA: Currently sloping downward and acting as dynamic resistance
– 50-day SMA: Reinforces the bearish stance, with the pair trading well below this average
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**Weekly Technical Analysis**
– **Bears Remain in Control**: Selling pressure persists, driven by the US Dollar’s resilience and a lack of fresh bullish catalysts for the Australian Dollar.
– **Unsuccessful rebounds**: Despite occasional short-lived rallies, AUD/USD has consistently failed at key resistance zones, indicating that sellers are defending higher levels.
– **Price action closer to support**: As the pair edges towards 0.6476, technical break below would open the path toward the November 2023 lows (0.6361).
– **Potential for further downside**: If macroeconomic conditions do not shift and US Dollar strength continues, AUD/USD could retest lower levels not seen since late 2023.
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**Medium- to Long-Term Outlook**
– **Downtrend persists**: The primary trend since December 2023 continues to be bearish. Each rally has been met with strong selling, indicating that bears have yet to relinquish market control.
– **Key technical patterns**:
– Lower highs and lower lows reinforce the established bearish trend.
– Potential for descending triangle pattern to complete if support at 0.6361 is tested and fails.
– **Next support levels to watch**:
– 0.6361 (November
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