**AUD/USD Regains Momentum, Trades Above 100-Hour Moving Average: Technical and Fundamental Analysis**
*Original credit: Kelvin Ching, FXDailyReport.com*
The currency market remains highly dynamic and responsive to global events, and the AUD/USD currency pair is demonstrating notable volatility amid evolving risk sentiment. As of the latest trading session, the Australian Dollar (AUD) rebounded from early-session lows to trade above a crucial technical indicator—the 100-hour moving average (MA). This article provides an in-depth analysis of recent price action, technical indicators, and macroeconomic drivers influencing the AUD/USD pair, with insights drawn from FXDailyReport contributions as well as reputable market sources like Investing.com and ForexLive.
### Recent Price Action: AUD/USD Bounces from Lows
During the latest session, the AUD/USD pair managed to recover after facing downward pressure in early trading. The pair surged above the 100-hour MA, a positive sign for short-term bullish traders. This movement suggests that buyers are re-entering the market, aiming to capitalize on oversold conditions or potential support levels.
– **Session Low Recovery**: The pair initially fell, recording session lows near 0.6580, before buyers initiated a rebound.
– **100-Hour MA Break**: With persistent buying, AUD/USD crossed above the 100-hour MA, currently hovering around the 0.6610-0.6620 zone.
– **Immediate Resistance and Support Levels**: Key resistance is noticed near the 0.6640 mark, with further hurdles at 0.6670 and 0.6700. On the downside, support lies at 0.6580 and then the psychological 0.6550 level.
The break above this moving average is technically significant. It indicates potential strength for the Aussie dollar and may attract more speculative interest if the market holds these gains.
### Technical Indicators and Trends
For currency traders, moving averages are among the most trusted technical tools to track market momentum and possible reversals. The 100-hour MA holds particular importance for intraday and swing traders, helping define short-term trend direction.
– **Bullish Signal**: Trading above the 100-hour MA signals a short-term upward bias.
– **RSI Indicator**: Relative Strength Index readings remain in the neutral-to-bullish territory, avoiding overbought signals for now.
– **Stochastic Oscillator**: The indicator shows a resilience in buying momentum, and there’s room for the upside before reaching overbought levels.
– **Price Action Patterns**: The current rebound forms a higher low compared to previous sessions, a foundational characteristic of a bullish reversal scenario.
#### Key Levels to Watch
– **Immediate Resistance**: 0.6640 (recent swing high)
– **Secondary Resistance**: 0.6670 (upper bound of the recent consolidation range)
– **Critical Support**: 0.6580 (today’s session low)
– **Deeper Support
Read more on AUD/USD trading.