**Australian Dollar Maintains Momentum against US Dollar: In-Depth Analysis (Adapted and Expanded from Economies.com, 28-08-2025)**
*Credit: Original analysis by Economies.com. Additional insights and context included.*
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### Overview
The AUD/USD currency pair, a benchmark for representing the strength of the Australian dollar versus the US dollar, has continued its upward trajectory in recent trading sessions. Continued optimism regarding the Australian economy, shifts in commodity markets, and evolving expectations about US Federal Reserve policies are playing pivotal roles in this movement. This analysis provides a comprehensive look at the price action, key technical levels, fundamental drivers, and potential outlook for the pairing.
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### Recent Performance and Price Action
– **AUD/USD Expansion**: The AUD/USD pair has extended its gains, decisively moving above the key resistance at 0.6560, indicating increased bullish sentiment among market participants.
– **Momentum**: Recent price action shows consistent higher highs and higher lows, confirming a bullish trend on both daily and four-hour charts.
– **Trading Volume**: Accompanying the rally, upticks in trading volumes have been observed, reflecting growing interest and conviction behind the move.
– **Short-term Correction**: Minor retracements have occurred, offering opportunities for buying at lower levels as buyers continually step in.
– **Range Extension**: The currency pair breached short-term range boundaries, opening pathways for further appreciation.
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### Technical Analysis
#### Key Technical Levels
– **Immediate Resistance**: The next significant resistance is located near 0.6635, aligning with previous swing highs and a key Fibonacci retracement level.
– **Major Resistance Zone**: A more substantial resistance band exists between 0.6710 and 0.6760, with significant historical pivot points and moving average convergence.
– **Support Levels**:
– **Initial Support**: 0.6560, now acting as a potential support after being breached.
– **Key Support Area**: 0.6510, coinciding with a recent consolidation base and the 50-period moving average.
– **Deeper Support**: 0.6450, which marks the lower boundary of the rising trend channel.
#### Indicator Overview
– **Moving Averages**: The 50-day and 200-day moving averages have recently formed a bullish crossover, providing technical confirmation of the upward momentum.
– **Relative Strength Index (RSI)**: RSI continues to hover near, but not above, overbought terrain, suggesting room remains for further upside before correction risks heighten.
– **MACD (Moving Average Convergence Divergence)**: Increasingly positive MACD histogram values are consistent with an ongoing bullish swing.
– **Trend Lines**: The prevailing upward trend line, extending from mid-August lows, indicates broad support for buyers as long as higher lows persist.
#### Chart Patterns
– **Breakout Confirmation**: The surge above 0.656
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