**AUD/USD Pulls Back from Session Highs, Trades Around 0.6505**
*Credit: Original analysis by Anthony Doyle, FXDailyReport.com*
The Australian dollar (AUD) experienced a retreat against the US dollar (USD) during recent trading sessions, with the currency pair moving back from its intraday highs to stabilize near the 0.6505 level. This movement comes as traders and investors digest a variety of economic factors and central bank commentaries that continue to impact the financial markets globally. The following in-depth analysis explores the price action of the AUD/USD currency pair, key technical indicators, fundamental drivers, and broader market context, giving traders a comprehensive view of the pair’s dynamics in the near term.
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### Market Overview and Current Price Action
– **Session Performance**: After attempting to push higher against the US dollar, the Australian dollar faced a wave of selling pressure as momentum faded, resulting in the pair settling near 0.6505 during the Asia-Pacific and London trading hours.
– **Recent Trend**: Over previous sessions, AUD/USD exhibited a moderate rally, lifted by risk sentiment and some stabilizing commodity prices, but remains constrained within a broader sideways-to-downward trend due to persistent macroeconomic headwinds.
– **Intraday Highs**: The pair initially targeted the 0.6530 region but struggled to maintain gains as sellers emerged, reflecting the market’s cautious approach ahead of major economic data releases.
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### Technical Analysis
#### Support and Resistance Levels
– **Immediate Support**: The 0.6500 level has emerged as immediate support, underpinned by recent price congestion and minor buying interest around this zone.
– **Further Support Levels**:
– 0.6480: Prior swing low, could attract buyers if the pair breaks lower.
– 0.6450: A more significant support area that coincides with previous reaction lows.
– **Resistance Levels**:
– 0.6530: The session’s high and a psychological barrier where recent rallies stalled.
– 0.6550: Represents a near-term ceiling, beyond which additional upside momentum may develop.
– 0.6600: A major resistance level for the medium term, marking the upper bound of recent consolidative phases.
#### Technical Indicators and Chart Patterns
– **Moving Averages**:
– The 50-period simple moving average (SMA) hovers marginally above the current price, hinting at ongoing bearish pressure in the short term.
– The 200-period SMA, further above, emphasizes the longer-term downtrend that has been in place throughout the year.
– **Relative Strength Index (RSI)**:
– The RSI on the 4-hour and daily charts resides in neutral territory, showing neither overbought nor oversold conditions. This implies the potential for direction to be driven by upcoming data releases.
– **Momentum and Candlestick Patterns**:
– Recent candles point
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