**AUD/USD Forex Technical Analysis and Trading Strategy for July 31, 2025**
*Original Author: Jitan Solanki, adapted and expanded by request.*
**Overview of Recent AUD/USD Price Action**
The Australian dollar (AUD) has seen significant volatility against the US dollar (USD) over the past several weeks. Various factors, including changes in risk appetite, macroeconomic data releases, and central bank policy trends, have exerted pressure on the AUD/USD pairing. As we approach the end of July 2025, forex traders are closely watching key levels to gauge the potential direction of the next move.
This comprehensive analysis outlines the recent price action, the most relevant technical zones, fundamental drivers, and a pragmatic trading strategy for AUD/USD. Data integrates insights from not only DailyForex, but also from other reputable financial news and analysis outlets such as FXStreet and Investing.com.
**Recent Technical Analysis**
– The AUD/USD pair is trading within a clear descending channel, respecting both upper and lower trendlines over the past month.
– Recent sessions have shown repeated failures to break above the 0.6800 resistance level.
– The 50-period exponential moving average (EMA) on the 4-hour chart has acted as dynamic resistance.
– Support has consistently held near the 0.6730-0.6715 zone.
– The Relative Strength Index (RSI) has oscillated between 35 and 55, showing mild bearish momentum but no strong oversold condition.
– Price action has compressed within a 70-pip range for a considerable period, suggesting a buildup before a potential breakout.
**Key Technical Levels and Zones**
**Support Levels:**
– 0.6715: Closest horizontal support, aligned with previous swing lows and multiple price reactions in July.
– 0.6700: Psychological barrier and historical pivot.
– 0.6660: Further downside support, notable for long-term buyers.
**Resistance Levels:**
– 0.6765: Intraday resistance, capping upside attempts.
– 0.6800: Strong structural resistance, representing the upper boundary of the channel and round-number significance.
– 0.6845: Stretch target on bullish momentum, not visited since late June.
**Important Technical Indicators to Monitor**
– Moving Averages: The 25 and 50-period EMAs on the 4-hour chart provide dynamic areas of resistance, particularly the confluence around 0.6760.
– RSI and Stochastics: Watch for divergence signals or oversold/overbought conditions, which could foreshadow a reversal.
– Volume: A spike in trading volume alongside a break of major support or resistance often confirms the authenticity of the move.
**Fundamental Context Impacting AUD/USD**
A. **Interest Rate Differentials**
– The Federal Reserve (FOMC) has maintained its benchmark interest rate at a relatively high level, reinforcing USD demand as US Treasury yields stay elevated.
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