**AUD/USD Approaches Key Technical Levels as Bulls Eye November 2024 Highs**
Original analysis by Adam Lemon, extended and updated.
The Australian Dollar (AUD) has shown renewed strength against its US counterpart (USD) in recent trading sessions, pushing the AUD/USD currency pair higher and drawing attention from forex traders around the globe. Currently, the pair is stretching toward important technical targets, notably the upper boundary of a key trendline and the highs established in November 2024.
This detailed analysis covers the latest technical outlook for AUD/USD, explores the factors driving the currency pair, and examines potential scenarios that could unfold over the coming weeks.
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## Technical Picture: AUD/USD Challenges Resistance
The AUD/USD currency pair has seen a robust upward move, bringing it closer to critical resistance levels.
**Key Observations:**
– **Topside Trend Line Resistance:** The pair is nearing the topside resistance of a well-established ascending trend channel visible on the daily chart. This trendline has acted as a reliable technical barrier in recent months, and a break above this level could signal a shift in market sentiment.
– **November 2024 Highs:** The highs registered in November 2024 are now within close reach. This former resistance zone will act as an important milestone for bulls, potentially inviting further buying interest if breached.
– **Momentum Indicators:** Major momentum oscillators, such as the Relative Strength Index (RSI), show that AUD/USD is approaching overbought territory, indicating the risk of a short-term pullback or consolidation.
**Immediate Levels To Watch:**
– **Resistance:** The topside trendline currently sits near 0.6770-0.6780. If momentum carries the price above this zone, the November 2024 high near 0.6800 is the next target for buyers.
– **Support:** Should a pullback occur, initial support lies around 0.6700, with further backing at 0.6650 and the base of the recent channel.
## Chart Structure and Price Action
A close look at the technical setup reveals key patterns and price dynamics shaping the pair’s outlook.
– **Ascending Channel Formation:** The price has traded within an upward-sloping channel since the start of 2024, confirming a series of higher highs and higher lows. This channel points to an underlying bullish bias so long as the structure holds.
– **Volume Dynamics:** Trading volumes have surged alongside the recent rally, suggesting heightened participation and conviction among traders backing the upward move.
– **Candlestick Patterns:** Successive bullish candlesticks on the daily timeframe highlight sustained buying interest, with little evidence of reversal patterns at present.
## Catalysts Behind the Rally
Several fundamental and macroeconomic factors have lent support to the Aussie dollar.
– **Commodity Price Resurgence:** Australia’s reliance on commodity exports, especially iron ore and coal, means stronger global demand directly benefits the AUD. Recent rebounds in these commodities have bolstered the currency.
– **Improved
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