**AUD/USD Faces Heightened Downside Pressure as Focus Stays on Key Support Levels**
By EconoTimes, with supplementary analysis and updates (**original article: “FxWirePro: AUD/USD downside pressure builds, key support level in focus”**)
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The Australian dollar experienced significant downward pressure against the US dollar in recent trading sessions, with market participants closely monitoring crucial support levels that could influence the short-to-medium term outlook for AUD/USD.
This in-depth article examines the recent price movements of the AUD/USD currency pair, analyzes technical and fundamental factors affecting the pair, and explores potential scenarios that could unfold in the coming days. Supplementary insights from ForexLive, Reuters, and Bloomberg are included to provide broader context and ensure a comprehensive assessment.
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### **Overview: Recent AUD/USD Price Movements**
Over the past week, AUD/USD has witnessed a steady decline. Risk sentiment has soured, driven by global economic uncertainties and firmer expectations of a prolonged period of higher interest rates in the United States. These factors have contributed to persistent strength in the US dollar, while risk-sensitive currencies like the Australian dollar face headwinds.
– **AUD/USD opened the week trading above 0.6600 but quickly faced resistance.**
– The currency pair slipped below 0.6550 as bearish pressure escalated.
– Market attention has shifted to key technical support zones, particularly near the 0.6500 level.
– As of the latest trading session, AUD/USD was last seen fluctuating around 0.6520, with fresh lows being tested amid intensifying downside momentum.
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### **Key Technical Analysis**
Technical indicators and price action provide important clues about the potential direction for AUD/USD. Multiple signals suggest the pair’s outlook remains bearish unless a catalyst can inspire fresh buying interest.
#### **Trend and Price Action**
– **AUD/USD has been locked in a descending channel on the daily chart,** marked by a sequence of lower highs and lower lows dating back to the start of April.
– The pair is currently below the 50-day and 200-day moving averages, indicating an established downtrend.
– There is limited bullish momentum; attempts to stage a recovery have failed near resistance bands.
– The most immediate support is the psychological 0.6500 region. A break below this level could see AUD/USD moving toward 0.6460-0.6450.
#### **Technical Indicators**
– The **Relative Strength Index (RSI)** is in neutral territory but trending lower, emphasizing growing bearish sentiment.
– **MACD** remains negative and is expanding to the downside, suggesting that momentum continues to favor sellers.
– In the four-hour chart, short-term moving averages continue to align in a bearish configuration, reinforcing downward risks.
#### **Key Technical Levels**
– **Resistance:**
– 0.6580 (short-term resistance, recent swing high)
– 0.6620 (50-day moving average)
– 0.6670 (sign
Read more on AUD/USD trading.