**AUD/USD at 0.6505: 3 Key Technical Signals Every Trader Should Watch**
*Based on the article by Skerdian Meta (FXLeaders), with additional insights into recent trends in the AUD/USD currency pair.*
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The Australian Dollar (AUD) against the US Dollar (USD), commonly abbreviated as AUD/USD, is among the most actively traded currency pairs in the forex market. Its movement often reflects not just the fundamentals of the Australian and US economies, but also global risk sentiment and commodity price trends, especially since Australia is a major commodities exporter.
As of the latest analysis, the AUD/USD pair trades near 0.6505 and presents several technical signals that traders should closely monitor. In this comprehensive review, we examine its recent performance, break down three critical technical signals, and integrate broader market context to help traders make informed decisions.
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## Recent Performance of AUD/USD
AUD/USD has been trading within a relatively tight range over the past few weeks, pressured by factors such as:
– Expectations of persistent high interest rates from the US Federal Reserve
– Weaker economic data from China, Australia’s largest trading partner
– Shifts in global risk sentiment linked to geopolitical events and economic releases
Despite these headwinds, AUD/USD has shown some resilience at the 0.6500 level, a region that has repeatedly offered support throughout the summer months.
**Recent catalysts influencing AUD/USD include:**
– US Non-Farm Payrolls and inflation data, driving demand for the USD as a safe haven
– The Reserve Bank of Australia’s cautious outlook on further rate hikes
– A slowdown in Chinese imports, suppressing demand for Australian commodities
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## Technical Analysis: 3 Key Signals Traders Can’t Ignore
### 1. **Horizontal Support at 0.6500**
Historical price action reveals that 0.6500 acts as a significant support level for the AUD/USD pair.
– **Multiple testing:** Over the past year, every major dip towards this area saw a swift buying response, indicating that market participants consider this a fair value zone for the AUD.
– **Psychological importance:** Whole and half numbers (such as 0.6500 or 0.7000) tend to act as psychological anchors, attracting a high volume of limit orders.
– **Impact of a break:** If AUD/USD convincingly breaks below 0.6500, there is potential for further downside toward the next major support zones at 0.6450 and 0.6400.
**Key points for traders:**
– Watch for long-tailed candlesticks (pin bars, hammers) around this level as evidence of bullish defense.
– Setting stop losses below 0.6500 provides protection on long trades if bears regain control.
– A confirmed daily close below the 0.6500 threshold increases the risk of a new downtrend leg.
### 2. **200-Day Simple Moving Average (SMA)**
Moving averages are
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