**The AUD/USD Settles with Strong Gains: Detailed Technical Analysis and Outlook**
*Adapted and expanded from Economies.com original analysis by Mahmoud Abu Ghosh*
—
**Introduction**
The Australian Dollar (AUD) witnessed significant upward movement against the US Dollar (USD) as the FX market absorbed a confluence of macroeconomic signals and technical indicators on August 14, 2025. This article provides a thorough breakdown of the AUD/USD pair’s recent performance and likely trajectories based on technical analysis, market sentiment, and economic fundamentals impacting the forex space. It incorporates insights from the original analysis by Mahmoud Abu Ghosh, as well as additional context provided by reputable financial sources to deliver a comprehensive overview.
—
**Key Highlights from the Recent AUD/USD Trading Session**
– The AUD/USD pair recorded notable gains, registering a strong closure above the primary resistance level.
– Momentum indicators suggest renewed buying interest, with the pair breaking through critical resistance on robust trading volumes.
– Technical patterns point toward continuation of the bullish trend, albeit with minor corrections possible in the short term.
—
**Technical Analysis of AUD/USD**
**1. Price Action**
– The pair breached the previous resistance at 0.6560, transitioning it into a functional support level.
– Price sustained above both the 50-day and 200-day moving averages throughout the session, confirming a short-to-medium term bullish outlook.
– The Relative Strength Index (RSI) climbed above the 60 level, signaling strong buying momentum without hitting overbought territory yet.
**2. Support and Resistance Levels**
– Immediate support now lies at 0.6560, with subsequent support at 0.6520 and the psychological level of 0.6500.
– Resistance has shifted upwards, with the key levels to watch set at 0.6625 and then 0.6670, coinciding with prior swing highs and Fibonacci retracement targets.
– If bulls maintain control, a sustained move above 0.6625 could open the path toward 0.6700 in the medium term.
**3. Candlestick Patterns**
– The latest daily candle formed a bullish engulfing pattern, reflecting a decisive takeover by buying interest relative to the preceding session’s range.
– Shorter timeframes (4-hour and 1-hour charts) displayed consecutive higher lows and higher highs, suggesting intraday market participants reinforced the bullish narrative.
**4. Volume Analysis**
– Upward movement was accompanied by higher-than-average trading volume, a classic confirmation that the price action was supported by real market conviction rather than speculative noise.
—
**Macro-Fundamental Factors Affecting the AUD/USD**
**1. Australian Economic Data**
– Australian employment data exceeded expectations, highlighting a resilient labor market. This bolstered investor confidence in the Aussie dollar.
– The Reserve Bank of Australia (RBA) issued a dovish-to-neutral statement in its latest policy meeting, reducing fears of aggressive tightening but affirming economic stability.
– Retail
Read more on AUD/USD trading.