**AUD/USD Rises after Bouncing Off Session Lows and Moving Above 100-Hour Moving Average**
*Original analysis credited to Cyrus Malek and FXDailyReport.com*
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The Australian Dollar to US Dollar (AUD/USD) currency pair experienced a significant recovery in recent trading, climbing from its session lows to surpass the 100-hour moving average. This movement indicates a potential shift in momentum and reflects broader trends impacting the Australian and US economies. In this detailed analysis, we break down the key factors influencing AUD/USD, the technical context of the move, and what traders should expect moving forward. Additional insights from reputable sources help round out this comprehensive view of the AUD/USD landscape.
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**Key Highlights of AUD/USD’s Recent Movement**
– The currency pair initially faced downward pressure, hitting session lows.
– After touching support, AUD/USD rebounded, climbing above its 100-hour moving average (MA).
– This bullish bounce has led to renewed interest from technical traders and market participants.
– The immediate focus shifts to whether the pair can maintain momentum and tackle key resistance levels.
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**Technical Analysis of AUD/USD**
*Support and Resistance Areas*
– The recent trading session saw AUD/USD find support near a previous low, forming a base for its rebound.
– The pair’s ability to rally above the 100-hour MA suggests that the selling pressure may have waned, at least temporarily.
– Immediate resistance is observed near the previous session highs and psychological round numbers (such as 0.6700 and 0.6750).
– Key support levels include the most recent lows and the 200-hour moving average, which can act as strong technical floors if downward movement resumes.
*Moving Averages and Momentum*
– Breaking above the 100-hour moving average is often interpreted as a near-term bullish signal by technical traders.
– Momentum indicators, such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence), show renewed optimism, rising above neutral levels and hinting at possible further gains.
– Traders will be watching for sustained trading above the 100-hour MA as confirmation of a successful shift in momentum.
*Chart Patterns and Price Action*
– The recent bounce off the lows forms a short-term bullish engulfing pattern on some intraday charts.
– Price action suggests buyers are stepping in, taking advantage of lower levels.
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**Fundamental Factors Impacting AUD/USD**
*Economic Releases in Australia*
– Australia’s latest employment figures came in better than expected, contributing to AUD strength in the early part of the session.
– Wage growth and retail sales data point to resilience in the domestic economy, which typically supports the local currency.
– The Reserve Bank of Australia (RBA) has maintained a cautious stance, but recent data reduces the likelihood of further rate cuts in the very near term.
*US Economic Developments*
– The US Dollar has recently been weighed down by below-forecast manufacturing data and dovish rhetoric from the Federal Reserve.
– Market speculation centers
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