**AUD/USD Forex Signal: Rally Gathers Momentum as Bulls Remain in Control**
*Based on an analysis originally by Crispus Nyaga for MENAFN, with added context and information from other reputable forex news outlets.*
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### Market Overview
In recent trading sessions, the Australian dollar (AUD) has continued its upward rally against the US dollar (USD), as evidenced by robust price action on major forex platforms. The AUD/USD pair has seen renewed bullish momentum, thanks to a combination of upbeat economic releases from Australia and slightly less hawkish commentary from the US Federal Reserve. This article examines the driving forces behind the recent AUD/USD rally, analyzes key technical levels, and explores potential scenarios for traders moving forward.
### Recent Price Action and Technical Outlook
The AUD/USD currency pair has experienced a notable move higher in July 2024. The pair surged from recent lows under 0.6650 to challenge resistance levels above 0.6750. Analyzing price action on the daily chart, the following technical characteristics stand out:
– **Upward Breakout**: The AUD/USD pair successfully breached multiple short-term resistance zones, confirming the presence of strong buying interest.
– **Support and Resistance Levels**: Key support has formed near 0.6700, with further support at 0.6675 and 0.6650. On the upside, resistance is visible at 0.6760 and then at 0.6800.
– **Moving Averages**: The 50-period and 200-period moving averages on the four-hour (H4) chart are trending upwards, reinforcing bullish sentiment.
– **Momentum Indicators**: The Relative Strength Index (RSI) is approaching overbought territory, though it has yet to signal any major bearish divergence.
– **Fibonacci Levels**: The rally retraced more than 50 percent of the downturn observed earlier in the quarter, a bullish signal for medium-term traders.
### Fundamental Catalysts Behind AUD Strength
#### Australian Economic Data
A key driver of the Australian dollar’s outperformance has been firmer-than-expected domestic data. The following economic indicators have supported the trend:
– **Retail Sales and Consumer Confidence**: Higher-than-anticipated retail sales figures indicate resilient consumer spending, relieving some concerns about a slowdown in economic activity.
– **Labor Market Data**: Unemployment rates remained near multi-year lows, while wage growth was steady. This supportive labor market backdrop has underpinned the RBA’s relatively hawkish stance.
– **Trade Balance**: Australia enjoys a healthy trade surplus, thanks to strong commodity exports, particularly iron ore and coal, to Asian trading partners such as China and Japan.
– **CPI Inflation**: Core inflation measures remain above the Reserve Bank of Australia’s (RBA) target band, fueling speculation that the central bank may keep policy relatively tight for longer.
#### RBA and Monetary Policy Outlook
Officials at the Reserve Bank of Australia have consistently struck a more haw
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