**AUD/USD Weekly Analysis: Technical & Fundamental Insights**
*Based in part on an analysis originally published by ActionForex.com.*
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## Overview
The AUD/USD currency pair experienced a week of notable volatility, as global economic dynamics, central bank policies, and technical factors all played pivotal roles in shaping market sentiment. The latest weekly chart action suggests ongoing uncertainty, with the Australian dollar facing both domestic and international challenges. This comprehensive review examines not only recent price actions but also dives into the technical and fundamental elements likely to influence the pair in the near term.
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## Weekly Price Performance
During the previous week, AUD/USD struggled to mount a sustained recovery, despite attempts to advance amidst shifting risk appetite across the forex markets. After testing significant technical resistance levels, selling pressure re-emerged, indicating that the pair remains within a well-defined range.
– **Opening and Closing Levels**: The pair opened the week around 0.6680 and traded to highs near 0.6710, only to retreat and close just above 0.6660.
– **Volatility**: While intraday swings were frequent, directional conviction was lacking. Market participants seemed cautious ahead of key central bank meetings and economic data.
– **Short-term Range**: The pair’s trading range has become more constricted, with buyers and sellers seemingly balanced between 0.6600 and 0.6720.
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## Technical Outlook
Technical analysis remains crucial for understanding AUD/USD’s current positioning and potential trajectories:
### 1. **Price Structure & Support/Resistance**
– **Resistance zone**: There is significant selling interest around 0.6715-0.6730, an area coinciding with recent swing highs on the daily and weekly timeframes.
– **Immediate support**: The 0.6600 level acts as an initial floor. A firmer support structure, however, rests near 0.6550.
– **Pivot Points**: Midweek price action hovered around the 0.6660 pivot, which previously acted as both a barrier and springboard.
– **Trendline analysis**: A mild uptrend from late April continues, but upside momentum is fading as prices repeatedly fail to secure a daily close above 0.6720. The shallow ascending trendline intersects near 0.6610.
– **Fibonacci retracement**: The corrective rally from the May lows has retraced roughly 61.8 percent of the previous decline, stalling at resistance.
### 2. **Moving Averages**
– **50-day SMA**: The pair is now oscillating around its 50-day simple moving average (currently 0.6640), suggesting a period of consolidation.
– **200-day SMA**: The longer-term average at 0.6565 continues to act as a critical support marker. Sustained trading above both averages would indicate renewed bullish intent.
### 3. **Momentum Indicators**
– **Relative Strength Index (RSI)**:
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