**AUD/USD Weekly Technical and Fundamental Outlook**
*Based on analysis by actionforex.com, supplemented with additional insights from DailyFX and ForexLive. Original analysis by actionforex.com.*
—
**Market Review: AUD/USD in Recent Sessions**
The AUD/USD currency pair experienced some notable volatility over the past week. Despite attempts at upside movement, the pair was unable to sustain gains and declined noticeably from recent highs. The technical structure, market sentiment, and overarching macroeconomic factors continue to exert influence over the pair’s behavior, shaping its near- and medium-term prospects.
– The pair attempted to breach higher resistance but faced renewed selling pressure.
– There was a brief rally fueled by optimism regarding risk assets but persistent concerns about the Chinese economic outlook and broader risk aversion weighed on the Australian Dollar.
– The US Federal Reserve’s signals and economic data releases were key drivers of volatility.
—
**Technical Analysis: Momentum and Key Levels**
*From actionforex.com with additional context from wider market data*
**Short-term Price Action**
– Recent price action indicates that rallies are being capped decisively around the 0.6700 handle.
– Subsequent declines found interim support near 0.6570, indicating this level is critical for short-term direction.
– The weekly close below certain moving averages denotes waning bullish momentum and enhances the likelihood of correction rather than resumption of an uptrend.
**Trend Analysis**
– Daily and 4-Hour charts show that the recent uptrend has lost significant steam.
– Oscillators such as RSI are rolling over from overbought territory, warning of a potential deeper pullback.
– The MACD histogram reflects slowing bullish momentum, further backing the likelihood of correction.
**Support and Resistance**
Key technical levels to watch include:
– Immediate resistance is clustered at 0.6680, followed by a stronger supply zone around 0.6700-0.6710.
– Solid support now lies at 0.6570, with a further critical level at 0.6520, which coincides with the 100-day moving average.
– Should the pair break beneath 0.6520, it may accelerate toward the next support at 0.6450.
**Weekly Outlook**
– The weekly candle formation depicts a clear rejection from resistance, suggesting potential continuation of the correction.
– Sustained trading below the 0.6700 pivot would favor further downside.
– If bulls manage to reclaim ground above 0.6700, a run toward 0.6800 could potentially materialize, but this seems unlikely absent a substantial shift in risk sentiment.
—
**Fundamental Backdrop: Economic Drivers and Global Factors**
Australia’s and the United States’ economic performance remains at the center of AUD/USD’s trajectory. The pair remains highly sensitive to central banking policy, domestic data prints, and global risk influences.
**Australian Economic Factors**
– Recent data from Australia, including employment figures and business sentiment readings, have been mixed.
–
Read more on AUD/USD trading.