**AUD/USD Technical Analysis: Bulls Assert Dominance as Price Surges to New 2025 Highs**
*Original reporting by InvestingLive.com. Expanded and supplemented with additional information and insight.*
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The AUD/USD currency pair has recently made significant strides, capturing attention in the forex markets as it broke to fresh highs for 2025. Momentum has shifted sharply in favor of the bulls, with the pair sustaining its upward trajectory amid renewed optimism for the Australian dollar. This article will provide an in-depth technical analysis of the AUD/USD movement, utilizing chart patterns, support and resistance levels, volume data, moving averages, and sentiment indicators. The interplay between macroeconomic fundamentals and technical factors will also be discussed, offering a comprehensive perspective on what lies ahead for this major currency pair.
## Overview of the Recent Rally
– The Australian dollar surged to its highest level against the US dollar since the beginning of 2025, extending a powerful rally seen through late Q2.
– The bullish momentum has been supported by solid economic data from Australia, easing expectations of Fed rate hikes, and persistent demand for higher-yielding currencies.
– At the core of this movement is investors’ perception that the Reserve Bank of Australia (RBA) may maintain or tighten rates further, in contrast to a potentially more dovish US Federal Reserve.
– Risk appetite remains robust, further reinforcing AUD/USD’s upside as global growth sentiment stabilizes.
## Technical Analysis: Chart Patterns and Key Levels
### Price Action and Trend Analysis
– On the daily chart, AUD/USD continues to print higher highs and higher lows, confirming a well-defined uptrend.
– The pair decisively cleared previous resistance near the 0.6750 region, cementing its breakout above consolidation patterns observed earlier in the year.
– Recent sessions have seen strong bullish candlesticks, reflecting substantial buying pressure and a lack of significant pullbacks.
### Key Support and Resistance Zones
– **Immediate Resistance**
– As of the latest rally, AUD/USD faces psychological resistance at 0.6900.
– Above this, the next key resistance is seen at the round figure 0.7000, where sellers may attempt to regroup.
– **Immediate Support**
– Initial support is established at the former resistance (0.6750), now a potential springboard for buyers on any dip.
– Further support rests at 0.6700, aligning with recent swing lows and confluence zones on the 50-day moving average.
– **Long-term Targets**
– Should the momentum persist and the pair sustains above 0.7000, technical projections highlight potential for a run towards 0.7200, revisiting highs last tested in mid-2021.
### Moving Averages and Oscillators
– **200-Day Moving Average (200-DMA)**
– Price action remains well above the 200-DMA, underlining the prevailing bullish environment.
– The 200-DMA currently acts as dynamic support
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