**AUD/USD Expected to Edge Above 0.6700: An In-Depth Analysis (Credit: FXStreet, UOB Group)**
*Author: Credit to FXStreet and UOB Group for initial analysis*
## Introduction
The Australian Dollar (AUD) against the US Dollar (USD) has drawn considerable attention from forex traders and analysts due to its recent upward momentum and shifting global economic conditions. According to a recent forecast by the UOB Group, as reported by FXStreet, there is an expectation for the AUD/USD pair to gradually edge above the 0.6700 level in the near term. This article provides an in-depth analysis of the factors influencing this forecast and brings in additional insights from the latest economic data, central bank commentary, and prevailing market sentiment.
## UOB Group’s Outlook for AUD/USD
The research team at UOB Group shared the following perspectives, as reported by FXStreet:
– The AUD/USD pair is expected to see upward pressure, rising above the 0.6700 level in the coming sessions.
– The team emphasizes that while there is scope for further gains, risks remain and traders should remain vigilant to potential volatility.
– The analysis is based on technical indicators and fundamental factors, including monetary policy divergence and global risk sentiment.
### Key Highlights from the UOB Group Report
– Short-term upward bias for AUD/USD, especially if the pair can hold above key support levels.
– Resistance is identified just above the 0.6700 threshold, with any break above this level potentially sparking further gains.
– A drop below 0.6640 would signal easing upward momentum and could shift the outlook.
– The near-term outlook is positive, but a clean break above 0.6700 is required for sustained upside.
## Recent Performance and Technical Analysis
### Price Action Review
The AUD/USD pair has experienced increased volatility in recent weeks, driven by a combination of US data releases, speculation about Federal Reserve policy, and changing risk appetite in global markets.
#### Support and Resistance Levels
– Immediate Resistance: 0.6700. This psychological barrier has capped intraday rallies.
– Next Resistance: 0.6735. A level where previous attempted breakouts have stalled.
– Immediate Support: 0.6640. Loss of this level could open the door for a larger retracement.
– Next Support: 0.6600. This is a significant zone, historically attracting buyers.
#### Technical Indicators
– Moving Averages: The 20-day and 50-day moving averages are converging near 0.6660, acting as a magnet for price.
– Relative Strength Index (RSI): The daily RSI remains above 50, signaling ongoing bullish momentum, but not yet overbought.
– MACD: The MACD histogram supports a bullish stance as long as it remains above the zero line.
## Fundamental Drivers Supporting AUD
### 1. RBA Policy and Economic Outlook
– The Reserve Bank of Australia
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