**AUD/USD Technical Analysis: Volatile Swings Persist but Short-term Bearish Bias Remains**
*Credit to Adam Button and Forexlive for the original analysis*
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The AUD/USD currency pair has weathered a particularly turbulent period, with wide price swings and unpredictable volatility as traders assess the latest economic data, central bank outlooks, and risk sentiment. While the pair has been unable to establish a decisive directional move, several technical indicators and recent market behavior suggest the bears retain a short-term advantage. This in-depth analysis will explore the pair’s recent price action, key technical levels, underlying drivers influencing the Australian dollar, and potential scenarios moving forward. Additional insights from other reputable sources will be incorporated to provide a comprehensive view of the AUD/USD landscape.
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### 1. Recent Price Action: Choppy Waters and Bearish Tilt
– **Volatility Increases:**
Over recent sessions, AUD/USD has witnessed considerable intraday swings, reflecting a broader trend of uncertainty in risk assets and sensitivity to macroeconomic headlines. Ranges have widened, with both quick rallies and sharp selloffs appearing in consecutive sessions.
– **Failed Bulls, Responsive Sellers:**
Despite repeated attempts to stage a meaningful rally, the pair has consistently encountered resistance levels that have proven difficult to overcome. Each bounce has attracted sellers, resulting in lower highs and a pattern of fading bullish momentum.
– **Short-term Downtrend Still Intact:**
Analysis of the daily chart reveals that the short-term downtrend remains unbroken. Lower lows and lower highs are visible, demonstrating that sellers are currently in control of price direction.
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### 2. Key Technical Levels to Watch
Successful trading in currency markets depends on effective identification and monitoring of critical price areas. For AUD/USD, the following zones are particularly notable:
#### Support Zones
– **0.6580/85:**
This is a key area as highlighted by Adam Button’s Forexlive analysis. A cluster of recent lows near this region has emerged as a short-term floor. A convincing move below could accelerate downside pressure.
– **0.6550:**
This level represents a prior base where buyers have stepped in multiple times over the past month. A break here opens the door to a possible test of the May swing lows.
– **0.6500 Psychological Level:**
Round numbers often serve as important reference points. Should negative momentum gather pace, this could be the next major downside target.
#### Resistance Areas
– **0.6650:**
Sellers have been aggressive near this level, which coincides with the descending trendline from recent highs. Bulls would need a sustained break and daily close above this area to shift the short-term bias.
– **0.6700/30:**
Any push above 0.6650 faces further hurdles in the form of clustered moving averages and former support turned resistance. The 200-day moving average is also lurking in this vicinity, adding technical significance.
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