**AUD/USD Weekly Technical and Fundamental Outlook**
*Based on analysis originally by ActionForex.com, expanded for depth and additional insights.*
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### Overview
The Australian Dollar (AUD) has experienced a turbulent week against the US Dollar (USD), encountering strong resistance and moderate support. Recently, AUD/USD failed to sustain upward momentum, reversing course as USD strength reasserted itself. Investors are closely watching how forthcoming economic data and central bank commentary will impact the pair’s direction. This report examines technical patterns, fundamental drivers, and potential scenarios in the week ahead.
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### Market Recap and Recent Price Action
– After a promising rally, AUD/USD hit a significant supply zone around the 0.6700 level.
– The pair then reversed, declining towards the 0.6600 area as risk sentiment faded and the US Dollar strengthened.
– Last week’s trading ended with AUD/USD hovering near the mid-0.6600s, unable to retake broken support or decisively break lower.
#### Weekly Performance at a Glance
– Opening level: Near 0.6680
– Weekly high: Approximately 0.6705
– Weekly low: Around 0.6580
– Closing level: About 0.6610
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### Technical Analysis
#### Key Support and Resistance Levels
– **Immediate resistance:** 0.6685 (recent swing high)
– **Next resistance:** 0.6710 (longer-term descending trendline)
– **Immediate support:** 0.6580 (recent swing low)
– **Stronger support:** 0.6476 (March and May lows)
– **Major support:** 0.6460 (previous consolidation base)
#### Momentum Indicators
– The daily Relative Strength Index (RSI) remains neutral, hovering around the mid-50s.
– Moving averages (21- and 50-day EMAs) are converging, reflecting indecision and lack of clear momentum.
– MACD histogram is flatlining, reinforcing a consolidation phase.
#### Chart Scenarios and Patterns
– The inability to break above 0.6700 suggests a double-top formation may be developing.
– Price remains above the 200-day moving average (currently near 0.6560), which has provided reliable support since late April.
##### Bullish Scenario
– A clear daily close above 0.6700 would open the path to 0.6800 and subsequently the 0.6870 resistance area.
– Upside moves could accelerate if AUD/USD maintains price action above both 50- and 200-day moving averages.
##### Bearish Scenario
– A decisive break below 0.6580 exposes the pair to a larger retracement towards 0.6530 followed by 0.6460.
– Failure to hold above the 200-day moving average would likely trigger further technical selling.
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### Fundamental Drivers
#### Australian Economic Developments
– May inflation data continues to show moderation, reducing
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