**AUD/USD Forex Signal – July 31, 2025**
*Originally by: DailyForex Analyst Team*
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### Introduction: Overview of AUD/USD Dynamics
The Australian Dollar (AUD) versus the US Dollar (USD) is a closely watched pair in forex trading, reflecting not only the dynamics between two major economies but also market sentiment regarding risk, commodity prices, and global financial conditions. The AUD/USD has historically been sensitive to shifts in global risk appetite, commodity demand (notably metals and agricultural goods), and central bank actions.
On July 31, 2025, traders are analyzing the pair amid a shifting fundamental landscape. This article delves deeply into the technical and fundamental backdrops of AUD/USD, explores trading strategies based on current chart structures, and references additional market commentary to provide a rounded perspective for traders.
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### Recent Price Movement and Technical Backdrop
– **Current Price Action:**
As of July 31, 2025, the AUD/USD pair is trading near the 0.6800 handle, reflecting ongoing volatility. In the previous sessions, the pair experienced both upward retracements and resumed downside movement, with price dynamics influenced by mixed US macroeconomic data and Reserve Bank of Australia (RBA) commentary.
– **Recent Highs and Lows:**
– The AUD/USD tested a session high close to 0.6840 before encountering resistance.
– Bears have managed to push the price to a session low around 0.6780, but major support levels have held firm thus far.
– **Volatility Analysis:**
The volatility remains elevated due to crosscurrents from risk sentiment, commodity price swings, and speculation about monetary policy paths in both Australia and the United States.
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### Technical Levels to Watch
The following support and resistance levels are crucial for day traders and swing traders:
#### Key Support Levels
– **0.6780:** Intraday support base from recent session low
– **0.6750:** Psychological round number and former resistance-turned-support from mid-July trading
– **0.6700:** Medium-term swing support; significant breach may indicate a more profound bearish move
#### Key Resistance Levels
– **0.6840:** Most recent swing high and technical resistance
– **0.6880:** Multi-week resistance and potential barrier for further advances
– **0.6920:** Longer-term resistance aligning with trend line from Q2 2025
#### Chart Patterns and Indicators
– **Moving Averages (MA):**
– The 50-period simple moving average (SMA) is sloping slightly downward near 0.6815, hinting at cautious bearishness.
– The 200-period SMA, elevated at 0.6890, still functions as overarching resistance.
– **Relative Strength Index (RSI):**
– The daily RSI hovers near 45, reflecting consolidation and lack of a definitive overbought
Read more on AUD/USD trading.