**AUD/USD Weekly Outlook (Based on ActionForex Report and Additional Research)**
*Source: ActionForex, additional analysis incorporated. Credit to ActionForex original author.*
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### Overview
The AUD/USD currency pair ended the week in a consolidative phase, showing relative stability after previous volatility. The pattern for AUD/USD indicates a temporary rebound within a broader bearish trend. Technical indicators suggest that while some upward correction is possible in the very near term, risks remain skewed to the downside in the medium to long term. This article provides a comprehensive breakdown of the pair’s recent performances, technical outlook, and fundamental drivers, blending insights from the ActionForex weekly report with external market data and analysis.
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### Weekly Performance Review
AUD/USD navigated a period of consolidation throughout the previous week, with modest movement after recent declines. The pair bounced from short-term support levels but showed capped upside due to prevailing bearish momentum.
**Key Points From Last Week’s Action:**
– **Established a short-term base:** The currency found support near 0.6580, staving off further declines temporarily.
– **Muted advances:** Upside attempts were capped below the 0.6675-0.6680 resistance area.
– **Continued overall downtrend:** Recent action is interpreted as a corrective pause rather than a genuine reversal.
– **Underlying sentiment:** Market tone remains cautious, with AUD pressured by softer Chinese data and a firm US Dollar.
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### Technical Outlook
#### Short-Term Analysis
– **Consolidation zone:** AUD/USD spent most of the week consolidating between 0.6580 and 0.6675, hinting at indecision.
– **Potential for mild rebound:** Given the oversold conditions on shorter timeframes, a modest corrective bounce could develop.
– **Resistance levels:** To sustain any rally, bulls need to reclaim the 0.6713-0.6760 region.
– **Descending structure:** The sequence of lower highs and lower lows on daily charts underscores an intact bearish structure.
#### Chart Patterns and Indicators
– **Moving averages:** The pair is trading below both the 20-day and 50-day simple moving averages, indicating persistent downward pressure.
– **Fibonacci retracement:** The latest recovery attempts are struggling below the 38.2 Fibonacci retracement of the 0.6870-0.6580 drop, suggesting correction appears shallow.
– **Momentum oscillators:** RSI (Relative Strength Index) remains beneath the neutral 50 line, confirming weaker bullish momentum. MACD (Moving Average Convergence Divergence) histogram also signals bearish continuation though with signs of flattening, denoting slowing downside force.
– **Pivot points:** Weekly pivot is calculated at 0.6627. Sustained trading below this mark could embolden sellers.
#### Trading Levels for the Week
– **Primary Support Levels:**
– 0.6580: Short-term base, tested and held several times.
– 0.6545
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