**AUD/USD Weekly Technical Analysis and Outlook**
*Inspired by writing from ActionForex (original by ActionForex.com); additional technical insights included*
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### Overview
The currency pair of Australian Dollar (AUD) against the US Dollar (USD), commonly referred to as AUD/USD, experienced moderately muted price action over the past week. After initial volatility, AUD/USD showcased limited directional bias, encapsulated within a defined trading range. Market participants are evaluating global cues, domestic economic indicators, and central bank policy stances in order to position themselves for potential breakouts or reversals. This comprehensive technical outlook combines ActionForex’s analysis with additional perspectives to assist traders and investors in navigating the AUD/USD environment.
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### Previous Week’s Price Action
– **Limited Movement:** AUD/USD traded within a relatively narrow range compared to the previous weeks.
– **Support & Resistance:** Price action respected key support near 0.6589 and met resistance below 0.6700.
– **Doji Candle Formation:** The weekly candlestick structure suggests market indecision, with bulls and bears unable to assert dominance.
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### Technical Analysis: Daily and Weekly Charts
The analysis draws on recent price data, classic technical indicators, and trendline observations.
#### Support and Resistance Levels
– **Immediate Support:** 0.6589 remains the key short-term support. This level previously acted as a floor for countertrend rallies.
– **Resistance:** The area near 0.6702 acts as the immediate resistance, with further upside capped by 0.6729 and, above that, multi-week highs.
– **Trend Support:** A rising trendline from late 2023 provides dynamic support in the 0.65-0.66 zone.
#### Technical Indicators
– **Moving Averages:** The pair is gravitating towards the 55-day Exponential Moving Average (EMA) on weekly charts. Price consistently oscillates around this dynamic average, reflecting an ongoing consolidation.
– **Momentum:** Oscillators such as the Relative Strength Index (RSI) hover close to their midpoints. No overbought or oversold signals have emerged, suggesting equilibrium between buying and selling forces.
– **MACD (Moving Average Convergence Divergence):** Weekly MACD is marginally positive, indicating mild bullish momentum, but signal lines remain tightly coupled, which underscores the market’s indecisiveness.
#### Price Patterns
– **Range-Bound Trading:** AUD/USD is confined between 0.6589 (support) and 0.6702 (resistance), forming a horizontal channel.
– **Breakout Scenarios:** A decisive close above 0.6702 could initiate a run toward higher resistance areas. Conversely, a breach below 0.6589 may trigger a correction toward 0.6461 and potentially 0.6361.
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### Fundamental Backdrop
The technical setup is influenced by broader economic and policy narratives affecting both the Australian Dollar and the US Dollar.
#### Australia
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