**AUD/USD Weekly Analysis and Technical Outlook: Extended Recovery in Focus**
*Based on analysis by ActionForex (https://www.actionforex.com/technical-outlook/audusd-outlook/619410-aud-usd-weekly-report-136/), with additional information incorporated for enhanced perspective*
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### Overview
The Australian Dollar (AUD) against the US Dollar (USD) saw a promising week, attempting to build on a recent short-term recovery. After enduring intense pressure for much of the past month, AUD/USD is showing signs of stabilization and the potential for a more extended rebound. The following analysis delves into the technical structure, underlying drivers, key resistance and support levels, as well as broader market context influencing the pair.
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### Weekly Price Performance
– **Previous Close**: AUD/USD began the week consolidating after minor losses, before rallying through the latter half.
– **Trading Range**: The pair fluctuated within 0.6580 and 0.6700, with buying momentum building above 0.6650.
– **Closing Tone**: The close was bullish, continuing the short-term reversal set in motion in previous sessions.
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### Technical Analysis
**Short-Term Outlook**
– **Support Levels**:
– Primary support sits around 0.6580 (previous week’s low and a psychological round number).
– Further support can be seen at 0.6550, aligning with the base formed in mid-May.
– **Resistance Levels**:
– Immediate resistance appears at 0.6700, which marks a near-term ceiling observed throughout April.
– Additional key resistance rests at 0.6725 (early-May high) and 0.6800 (a major psychological marker).
– **Momentum Indicators**:
– The Relative Strength Index (RSI) has moved above neutral territory (50), suggesting positive impulse.
– MACD histogram tilts upward, supporting a bullish scenario in the short term.
– Daily candles show consecutive higher lows, indicating buyers have regained control.
– **Moving Averages**:
– The 20-day EMA is beginning to curl upwards, reinforcing the view that the downward momentum has abated.
– Price action is approaching the 50-day EMA, a pivotal intermediate resistance zone.
**Medium-Term Context**
– The pair remains within a broad sideways channel established over the past three months.
– Recent downtrend lines have been broken to the upside, signaling the likelihood of a corrective rally.
**Longer-Term Perspective**
– AUD/USD remains trapped in a large rangebound structure extending from 0.6450 up to 0.6850.
– The long-term trend is still in question, with only a sustained move above 0.6850 justifying a firm bullish stance.
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### Fundamental Drivers
**Australian Economic Data**
– **Employment reports**: Recent figures have demonstrated a resilient labor market, buttressing the AUD despite soft consumer
Read more on AUD/USD trading.