**AUD/USD Daily Technical Analysis and Outlook**
*Based on the content originally published by the Action Forex team and expanded with information from additional sources such as DailyFX and ForexLive.*
—
**Market Overview: AUD/USD Current Sentiment**
As of early June 2024, the AUD/USD pair remains in a tight range, reflecting a market in search of direction amidst mixed global cues. The Australian Dollar has shown signs of resilience recently, but overall momentum remains capped by ongoing concerns over China’s economy and fluctuating expectations regarding central bank policy from both the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed).
**Key Features of Recent Price Action**
– The pair is stuck within a defined range, with resistance and support levels holding firm.
– Both bulls and bears are cautious, waiting for stronger signals before committing to new positions.
– Macroeconomic factors such as inflation data, employment trends, and global risk appetite continue to influence intraday swings.
**Technical Analysis: Short-Term and Medium-Term Perspectives**
*Support and Resistance Levels*
– Immediate Support: The 0.6578 level remains pivotal. If the pair dips below this zone and confirms beneath the 55-day Exponential Moving Average (EMA), bearish momentum may accelerate.
– Next Support: The 0.6513 region, representing a prior swing low and a psychological round number, will be closely watched.
– Resistance: The initial barrier lies at 0.6702, a level that has capped recent advances. A break above here could lead to a test of the 0.6737 zone.
*Moving Averages and Indicators*
– The 55-day EMA is currently providing key dynamic support near the 0.6580 area.
– The Relative Strength Index (RSI) on the daily chart is at neutral territory, suggesting a lack of clear directional bias at the moment.
– MACD histogram readings are flat, reinforcing the market’s indecisive tone.
**Trend Assessment and Pattern Recognition**
*Short-Term View (Daily Chart)*
– The overall trend remains sideways to mildly bullish, as long as price action stays above the 55-day EMA.
– Repeated failures to breach resistance levels signal that there is still supply overhead.
– Lower highs and higher lows suggest the range may soon tighten, potentially preceding a breakout.
*Medium-Term View (Weekly Chart)*
– The weekly chart reveals consolidation within a broad band between 0.6500 and 0.6700.
– Stronger trends are likely to emerge only with a decisive move outside of this band.
– The formation of a possible ascending triangle could point to bullish continuation if resistance is breached.
**Drivers of AUD/USD Range Trading**
*Economic Calendar Highlights*
– Australian economic data such as retail sales, employment figures, and Consumer Price Index (CPI) releases are being carefully monitored by traders.
– US economic releases, especially those related to inflation and non-farm payrolls, are directly impacting USD sentiment and, by
Read more on AUD/USD trading.