**AUD/USD Price Leans on Key Support: Technical Analysis Update**
*Adapted from economies.com with additional research and context.*
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## Introduction
The AUD/USD currency pair—representing the Australian dollar against the US dollar—has remained a focus for forex traders due to its sensitivity to both domestic and international economic developments. Recently, the pair has been testing a critical support level, which could play a pivotal role in determining its future direction. In this article, we examine the current technical outlook for AUD/USD, consider potential scenarios based on price action, and incorporate broader fundamental perspectives that may influence the pair’s movement in the short and medium term.
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## Technical Analysis Overview
### Support and Resistance Dynamics
– The AUD/USD has been hovering near a key support level, specifically around the 0.6700 price zone.
– Multiple attempts to breach this level on the downside have so far failed, indicating robust buying interest.
– Immediate resistance is observed near the 0.6780 area, followed by a major psychological barrier at 0.6850.
– The 50-day simple moving average (SMA) is acting as dynamic support, while the 200-day SMA remains well above, which traders often interpret as a sign that the medium-term trend is intact.
### Recent Price Action
– The pair has displayed a pattern of higher lows since the previous quarter, but progress on the topside is limited.
– Spikes in volatility have occurred in response to US economic data releases and speeches by Federal Reserve officials.
– Price action suggests consolidation, forming a range-bound market within the aforementioned support and resistance parameters.
– Notably, the Relative Strength Index (RSI) hovers near the 50 mark, reinforcing the idea of indecision among market participants.
### Chart Patterns and Trendlines
– A minor ascending trendline has been supporting price since early in the current quarter, indicating persistent bullish pressure.
– However, the inability to sustain recoveries above resistance demonstrates that bears remain active and could be preparing for another push lower if macroeconomic catalysts arise.
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## Key Technical Levels
– **Support Levels:**
– 0.6700 (primary, horizontal support)
– 0.6640 (next critical support level, multi-month low zone)
– 0.6550 (major support, last breached in late 2023)
– **Resistance Levels:**
– 0.6780 (short-term resistance)
– 0.6850 (medium-term resistance)
– 0.6930 (long-term resistance, psychologically significant)
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## Potential Technical Scenarios
### Bullish Scenario
Should buyers successfully defend the 0.6700 support area and generate sufficient momentum:
– Price could attempt another test of immediate resistance at 0.6780.
– A daily close above 0.6780 would potentially open the door for a move toward 0.6850, a key pivot zone noted for repeated interactions during
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