**AUD/USD Faces Continued Pressure as Key Support Levels Emerge**
*Adapted and expanded from Eamonn Sheridan’s original report for ForexLive, with additional context from market commentary and recent forex trends.*
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**Overview**
The Australian dollar (AUD) has come under renewed selling pressure against its US counterpart (USD) in recent trading sessions. As global market sentiment shifts due to both fundamental economic data and broader macro forces, the AUD/USD currency pair has descended toward crucial support levels that traders and analysts are now watching with heightened interest. Several factors, including changes in central bank policy outlooks, commodity price movements, and risk appetite among investors, are fueling this latest decline.
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**Latest Market Movements and Price Action**
– The AUD/USD pair has trended lower, slipping beneath previous short-term support markers.
– As the US dollar has strengthened broadly on safe-haven demand and expectations of a persistent Federal Reserve ‘higher for longer’ policy stance, the Australian dollar’s relative weakness has accelerated.
– In recent New York and Asia-Pacific sessions, AUD/USD saw a substantial selloff, moving under the 0.6620 region and challenging the sub-0.6600 level.
Traders are now closely watching the region around 0.6570 to 0.6580, which has acted as important price support in recent weeks. Should the pair breach this area decisively, technical analysts are highlighting the potential for a further drop toward May lows near 0.6510 and even a test of the psychologically significant 0.6500 handle.
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**Technical Analysis: Chart Structure and Key Levels**
– **Immediate Support**: Markets are focused on the 0.6580 zone, established during prior pullbacks in May and June. This area has seen buying interest emerge repeatedly, marking it as a key battleground for bulls and bears.
– **Major Support**: Below 0.6580, the 0.6510–0.6500 region serves as major support. This zone stems from the lows recorded in early May, which triggered a reversal higher at that time.
– **Resistance Levels**: Upside resistance is anticipated near 0.6640 and then at the 0.6700 level, a significant former breakdown zone.
**Technical Indicators**:
– **RSI (Relative Strength Index)** readings on the daily chart point toward a market that is moving closer to, but not yet deeply into, oversold territory. This leaves scope for further declines before technical exhaustion develops.
– **Moving Averages**: The AUD/USD remains below its 50-day and 200-day moving averages, highlighting ongoing negative momentum.
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**Drivers of Recent AUD/USD Weakness**
1. **Divergent Central Bank Outlooks**
– **Federal Reserve Policy**: Recent comments and economic data from the US have reinforced the narrative that the Federal Reserve will maintain higher interest rates for a prolonged period. Federal Reserve Chair Jerome Powell and several Fed members have
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