**AUD/USD Weekly Analysis and Outlook: Support Holds, Potential for Further Consolidation**
*Adapted & expanded from original analysis by ActionForex.com; additional insights referenced from DailyFX, ForexLive, and Investing.com*
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## Overview
The Australian Dollar (AUD) versus the United States Dollar (USD) remains within a relatively confined range near recent lows. After encountering significant selling pressure, the pair has found support in the mid-0.6500s. Technical signals suggest continued sideways trading in the short term, while traders closely monitor key levels for signs of a potential breakout. Fundamental drivers, such as interest rate expectations and economic data from both Australia and the US, continue to influence sentiment and momentum for the pair.
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## Weekly Performance Summary
– **Opening and Closing:** AUD/USD opened the week near 0.6580 and experienced a moderate degree of volatility. Despite testing lower levels, strong support was evident near 0.6500.
– **Trading Range:** The currency pair ranged between 0.6504 (support) and 0.6630 (resistance), which has defined the trading corridor for the past several sessions.
– **Short-Term Sentiment:** The market tone has been cautious. Lack of decisive direction has led to a consensus of near-term consolidation unless a catalyst triggers a break out of the established range.
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## Technical Analysis
### Daily and Weekly Chart Patterns
The technical backdrop for AUD/USD is characterized by sideways movement, bounded by established support and resistance levels:
– **Support Levels:**
– Initial support at 0.6504. This level has held firm during repeated tests over the past few sessions.
– Secondary support is found near the 0.6460 region. A breach of this threshold may accelerate downside momentum.
– **Resistance Levels:**
– Immediate resistance appears at 0.6630, which marks the upper boundary of the recent price action.
– Breaking above 0.6630 could target the next psychological barrier at 0.6700.
– **Trend Indicators:**
– The 20-day moving average (MA) currently trails beneath prices, signaling cautious optimism, though the lack of a clear uptrend suggests consolidation is more likely than a major directional move.
– The relative strength index (RSI) oscillates near the midpoint, which confirms the indecisive momentum in the market.
### Fibonacci Analysis and Retracement
– The prior bullish move from the cycle low at 0.6361 up to 0.6713 is undergoing a correction.
– Key Fibonacci retracement levels:
– 38.2% retracement: 0.6585
– 50% retracement: 0.6537
– 61.8% retracement: 0.6490
– The current pivot at 0.6504 aligns closely with these key Fibonacci areas, increasing their importance as support.
### Candlestick Patterns
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