**AUD/USD Weekly Analysis: Technical Overview and Market Sentiment**
*Adapted and expanded from the original article by ActionForex.com*
**1. Weekly Review and Price Movement**
The Australian Dollar (AUD) and US Dollar (USD) currency pair, commonly referred to as AUD/USD, displayed significant volatility over the recent trading week. While the pair experienced a sharp dip, the downside movement ultimately found footing above a pivotal support level at 0.6468. This price action suggests that the corrective phase, which began at 0.6870, remains ongoing, but the current technical structure points toward the possibility of a broad range-bound market rather than a decisive trend continuation or reversal.
– AUD/USD opened the review week slightly above the previous week’s close, evidencing a cautious tone among traders.
– Early sessions saw sellers pushing the pair lower, yet follow-through selling was limited as demand reemerged near established support.
– The currency pair exhibited resilience, rebounding modestly and staying within a consolidation pattern.
– Ultimately, trading concluded with AUD/USD hovering closer to mid-range levels, failing to break either critical support or resistance boundaries with conviction.
**2. Technical Analysis**
A detailed analysis of price charts and indicators reveals key technical factors influencing the pair:
*Support and Resistance Levels:*
– **Immediate Support:** The most immediate reference point on the downside is 0.6468. This level has held up as a significant floor, underscoring its role in arresting bearish momentum.
– **Short-Term Resistance:** The nearest hurdle on the upside lies at 0.6713. Any successful breach of this barrier could signal renewed bullish interests and open the pathway to higher targets.
– **Broader Range Boundaries:** The corrective structure since the 0.6870 high implies AUD/USD may continue trading between 0.6468 and 0.6713 in the near term, absent a strong catalyst.
*Chart Patterns and Tendencies:*
– The AUD/USD pair has been oscillating between support and resistance without establishing a clear direction. This range-bound behavior indicates a market in search of new drivers.
– Downside attempts have repeatedly been met with buying activity around the 0.6468 area, signifying buyer interest at these lower levels.
– Conversely, rallies are capped near 0.6713, where selling pressure has generally increased, resulting in reversals or pullbacks.
*Moving Averages and Momentum Indicators:*
– The 20-day and 50-day moving averages remain in close proximity to each other, with prices oscillating around these averages. This alignment is typical of markets lacking a dominant trend.
– Daily Relative Strength Index (RSI) readings hover near neutral territory, neither indicating overbought nor oversold conditions.
– MACD signals reflect indecision, with the indicator flattening out rather than trending, in harmony with the pair’s range-bound price action.
**3. Fundamental Factors Influencing AUD/USD**
Beyond technical factors,
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