**AUD/USD Attempts to Correct Within the Main Bullish Trend: In-Depth Technical Analysis**
*Based on analysis by Economies.com, July 25, 2025. Additional insights incorporated from contemporary forex research and market commentary.*
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## Market Overview
The Australian dollar (AUD) versus the US dollar (USD) has been a currency pair of significant focus for traders and analysts in mid-2025. The pair has shown remarkable resilience in the face of global economic shifts and has maintained a predominantly bullish trajectory over recent weeks. In the latest trading sessions, however, AUD/USD experienced a technical correction as the market consolidated following a strong bullish run.
Understanding the dynamics behind this correction, and what it might mean for the pair’s longer-term direction, is crucial for traders looking to capitalize on prevailing market trends.
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## Key Highlights
– The AUD/USD remains within a major bullish trend on the medium and long-term charts
– Recent sessions have seen a corrective pullback, challenging immediate support levels
– Technical indicators, trendlines, and fundamental factors continue to provide guidance for price expectations
– Both the Reserve Bank of Australia (RBA) and the Federal Reserve’s policy outlook play pivotal roles in the currency pair’s movements
– Risk sentiment, commodity price volatility, and macroeconomic data releases are central to the pair’s near-term trajectory
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## Technical Analysis Overview
The analysis published by Economies.com points to several important technical developments in AUD/USD price action:
### 1. Correction Attempts
– After reaching a significant resistance zone near recent highs, the AUD/USD pair began to retreat modestly.
– This correction appears to be a natural market reaction after an extended bull run, rather than a reversal of the overall upward trend.
– The pullback is testing shorter-term support areas, offering potential reentry points for trend-following participants.
### 2. Support and Resistance Levels
– Immediate support is identified close to the psychological 0.6700 level, which aligns with previous consolidation zones.
– If the pullback maintains above this level, the bullish outlook will remain valid, with potential resumption of upward movement.
– Resistance is seen at the previous swing high near 0.6850, which, if breached, may trigger a new wave of buying interest.
### 3. Moving Averages and Trendlines
– The pair currently holds above key exponential and simple moving averages on both the 4-hour and daily charts. These averages reinforce the prevailing bullish bias.
– The upward-sloping trendline, connecting the major swing lows of recent weeks, remains unbroken and acts as dynamic support.
– Any sustained move below this trendline could signal a deeper correction, possibly towards the 0.6600–0.6550 range.
### 4. Technical Indicators
– The Relative Strength Index (RSI) has moved from overbought territory and is now consolidating in a neutral to positive zone, suggesting the correction is offering the market a chance to reset
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