**AUD/USD Weekly Analysis: Mixed Signals and Key Technical Levels**
*Original article by ActionForex.com. Expanded and integrated analysis for in-depth understanding.*
The Australian Dollar (AUD) and US Dollar (USD) exchange rate, a key pair in the global Forex market, saw notable developments over the week assessed. The pair’s behavior and evolving trends were shaped by a blend of technical factors and broader macroeconomic themes. This report not only expands on the ActionForex.com analysis but also incorporates insights from additional industry sources to present a comprehensive weekly AUD/USD outlook.
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### Overview: AUD/USD Struggles Near Lows
Throughout the recent week, AUD/USD remained largely in a consolidation phase following previous declines. Price actions showed limited upward momentum, with bears in firm control. The pair hovered near multi-year lows, reflecting broader pressure on the commodity-linked AUD as the US Dollar maintained its strength.
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### Weekly Highlights: Key Themes and Market Sentiment
– **Range-Bound Behavior:**
AUD/USD traded in a relatively narrow band. Market participants hesitated to take aggressive positions given mixed data and uncertain catalysts.
– **Impact of US Data:**
The US economy continued to exhibit resilience, reinforcing expectations the Federal Reserve would keep rates elevated for a prolonged period. This strength helped underpin the USD.
– **Australian Domestic Factors:**
Data from Australia, including employment and leading economic indicators, was mixed. The outlook for the Reserve Bank of Australia’s (RBA) next moves remained cautious, offering little support to the AUD.
– **Global Risk Mood:**
Broader risk sentiment was shaky. Equity market volatility and concerns about global growth weighed on risk-sensitive currencies like the AUD.
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### Chart Analysis: Technical Outlook
#### Weekly Chart Perspective
Price movement on the weekly chart continued to respect a broader downtrend channel:
– The AUD/USD pair failed to break above resistance levels observed near 0.6700, reinforcing the downtrend.
– The pair closed below both the 20-week and 50-week Simple Moving Averages (SMAs), indicating ongoing bearish pressure.
#### Bearish Signals
– **Lower Lows, Lower Highs:**
Recent price action established a sequence of lower swing highs and swing lows, classic markers of a downtrend.
– **Key Support Broken:**
The critical support zone at 0.6600 gave way earlier in the quarter. The pair has struggled to regain traction above this psychological barrier.
– **MACD and RSI Indicators:**
Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) on the weekly chart signal a bearish trend. The MACD remains in negative territory, while the RSI failed to recover above neutral (50).
#### Short-Term Consolidation
– Resistance for the week was capped at 0.6700, with immediate support seen near recent lows at 0.6560 and 0.6500.
– A modest bounce attempted midweek
Read more on AUD/USD trading.