**AUD/USD Returns to Upward Momentum: Analysis and Outlook**
*Based on an article by Economies.com. Expanded with additional insights and recent market information.*
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## Overview of AUD/USD Recent Performance
The AUD/USD currency pair has shown a notable return to bullish momentum, attracting the attention of forex traders and analysts. This upward movement comes after a period of consolidative trading, with the Australian dollar (AUD) seeking to regain strength against the US dollar (USD). Several factors, including macroeconomic indicators, US and Australian central bank policies, commodity price trends, and global risk sentiment, continue to shape the outlook for the AUD/USD pair.
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## Technical Analysis of AUD/USD
A technical examination of the AUD/USD pair reveals key drivers behind its recent move higher. After previously hovering within a confined range, the pair has resumed its ascent, signaling renewed buying interest.
– **Support and Resistance Levels**:
– The AUD/USD pair found strong support near the 0.6600 level, which acted as a floor for recent pullbacks.
– On the upside, resistance is observed at 0.6750 and higher around the psychological 0.6800 area.
– If the pair breaches these resistance points, further gains toward 0.6900 and even 0.7000 could be anticipated in the medium term.
– **Trend Indicators**:
– Moving Averages: The 50-period SMA is trading above the 200-period SMA, indicating a bullish trend.
– RSI (Relative Strength Index) has moved out of neutral territory, suggesting increasing upward momentum but is not yet in overbought conditions.
– **Candlestick Patterns**:
– Recent daily candlesticks have shown long lower shadows, signaling buying pressure during intraday declines.
– A bullish engulfing pattern has formed on the 4-hour chart, confirming short-term positive sentiment.
– **Potential Scenarios**:
– If the pair sustains movement above 0.6710, it opens the path for further advances, targeting 0.6770, then 0.6820.
– Conversely, a retreat below 0.6660 could trigger a corrective phase, with initial support at 0.6615, followed by 0.6580.
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## Fundamental Drivers Affecting AUD/USD
The Australian dollar’s performance versus the US dollar is shaped by various fundamental factors, many of which have contributed to its recent rebound.
– **Australian Economic Data**:
– Recent GDP figures surprised to the upside, indicating resilience in the Australian economy.
– Labor market data remains solid, with unemployment steady at historic lows.
– Consumer sentiment indexes have ticked slightly higher, reflecting improved domestic confidence.
– **US Dollar Dynamics**:
– The greenback has retreated from recent highs as US inflation prints cooled, reducing the likelihood of further Federal Reserve rate hikes in the near term.
– Safe-haven demand for the US dollar has damp
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