**AUD/USD Daily Technical Outlook**
*Adapted and expanded from an analysis by ActionForex.com*
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The currency pair AUD/USD has attracted considerable attention from Forex traders and market analysts, given recent fluctuations and the influence of both Australian and global macroeconomic conditions. This in-depth technical outlook probes the current movement of the pair, critical support and resistance levels, and the broader market context, integrating current price actions and expanding upon the original work found on ActionForex.com.
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**Current Market Scenario**
– **Price Movements**: The AUD/USD pair has recently shown a corrective rally from its previous low. However, momentum in the short-term appears restrained as the pair encounters stiff resistance at certain technical thresholds.
– **Key Levels Observed**: The pair is currently struggling to break above the resistance at 0.6577, a level that has previously acted as a top for recovery bounces.
– **Trend Development**: The overall trend for AUD/USD remains bearish in the medium term, but traders are closely watching for signs of a more sustained reversal or continuation of the downtrend.
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**Technical Indicators and Diagnostics**
– **Simple Moving Averages (SMA)**:
– The 21-day SMA tracks relatively close to current price levels, providing immediate support/resistance delineation.
– The 55-day SMA is positioned higher and serves as a major hurdle for bullish attempts, indicating that medium-term momentum is still under pressure.
– **Relative Strength Index (RSI)**: The four-hour and daily RSI oscillators remain largely neutral, hovering close to 50. This suggests a lack of dominant momentum but also highlights potential for volatility if a breakout occurs.
– **MACD Analysis**: The Moving Average Convergence Divergence, though not giving strong signals right now, shows a narrowly positive crossover on the four-hour chart, hinting at potential for a short-term bullish push if broader risk appetite improves.
– **Bollinger Bands**: Price action is currently testing the middle band. A clean break above could open doors for a test of the upper Bollinger Band around recent swing highs.
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**Short-term Technical Perspective**
– **Immediate Resistance Level**: The pair faces resistance around 0.6585-0.6600, which aligns with previous swing highs and the upper edge of the current trading range.
– **Immediate Support Level**: Closest support is seen at 0.6520, with further demand emerging at 0.6500, a psychological round number and a previous support zone.
– **Bearish Scenario**: Failure to clear the 0.6585 level swiftly could prompt renewed selling, especially if US Dollar strength persists on the back of economic data or risk aversion.
– **Bullish Scenario**: Sustained trade above 0.6585 could trigger stops and fuel further gains, initially targeting the 0.6625 area, followed by 0.6675 if bullish momentum builds.
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**Medium-Term Market
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