**AUD/USD Pulls Back After Hitting Resistance: Detailed Technical Analysis**
*By: InvestingLive Technical Analysis Team (Original article credited to InvestingLive.com)*
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### Introduction
The Australian Dollar (AUD) and US Dollar (USD) currency pair, better known as AUD/USD, has long been a key focus for forex traders due to its sensitivity to global risk sentiment, commodity prices, and both countries’ economic data. Recently, the AUD/USD rallied to approach a significant resistance level, only to reverse course as sellers stepped in and pushed the price lower. This article explores the technical backdrop behind this corrective move, analyzes current market dynamics, references additional reputable sources, and looks ahead to what traders might expect for the AUD/USD.
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### Recent AUD/USD Price Action Overview
**Summary of Recent Events:**
– The AUD/USD pair experienced a rally, nearing a crucial resistance zone.
– Sellers emerged in the area around 0.6700, halting the upward trajectory.
– A technical correction followed, causing the pair to retreat intraday.
– Despite the pullback, overall market sentiment remains focused on key support and resistance levels.
The price behavior of AUD/USD observed today exemplifies classic forex market dynamics, where levels of historical support and resistance play central roles in shaping trader behavior.
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### Understanding the Resistance Zone
Technical resistance is a price zone or level at which a currency pair historically struggles to rise above, often due to increased supply or profit-taking by traders. In the case of AUD/USD, recent price action underscores the importance of the 0.6700 region, a psychologically and technically significant barrier.
#### Key Attributes of the 0.6700 Resistance Area:
– **Historical relevance:** This area has previously acted as a ceiling for AUD/USD, with multiple failed attempts to break higher.
– **Technical indicators:** The level often coincides with moving averages such as the 100-day or 200-day simple moving averages, and Fibonacci retracement levels drawn from recent swing highs and lows.
– **Market sentiment:** Traders who bought at lower levels may view this zone as a prudent spot to take profits, while new sellers may enter anticipating a reversal.
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### Detailed Technical Analysis
A comprehensive technical assessment of the AUD/USD reveals several important facets influencing short-term price direction.
#### 1. Price Structure and Chart Patterns
– The AUD/USD experienced a bullish acceleration, but momentum waned near the resistance region.
– Candlestick patterns on the daily chart, such as bearish engulfing or shooting star formations, may validate the presence of active sellers.
– Short-term charts (such as H1 or H4) show the pair making lower highs and lower lows after failing near resistance.
#### 2. Moving Averages
– The 100-day and 200-day simple moving averages are both in close proximity to the current price, suggesting a period of consolidation.
– Crossovers or rejections at these moving averages often trigger significant price responses in the forex markets.
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