**AUD/USD Technical Analysis: Bounce from Support, What’s Next?**
*Based in part on analysis by Eamonn Sheridan, ForexLive*
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The AUD/USD currency pair, representing the Australian dollar against the US dollar, has recently shown significant movement in the foreign exchange markets. After falling to a known support level, the pair lost downward momentum and initiated a bounce toward resistance, highlighting the interplay of technical levels in the short to medium-term trend.
In this comprehensive technical breakdown, we examine the recent price behaviors, the significance of current support and resistance levels, the impact of global and regional economic fundamentals, and what traders might expect in the coming sessions. Additional insights from leading financial news sources complement the analysis from ForexLive.
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## Recent Price Action in AUD/USD
The Australian dollar has recently experienced heightened volatility. Notably:
– AUD/USD came under renewed selling pressure
– The pair declined toward a technical support zone close to 0.6640, a critical level marked by past price reactions
– Selling momentum moderated as it approached this support, and buyers stepped in
– A corrective bounce ensued, but the move quickly stalled near resistance at the 0.6675–0.6690 range
This sequence of moves highlights the close attention traders are paying to short-term technical levels and the rapid response from both sellers and buyers as these levels are approached or breached.
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## Key Support and Resistance Levels
**Support Levels**
– *0.6640–0.6650*: Immediate support, previously acting as a base for several recoveries over the past two weeks. Buyers have consistently emerged here, signaling significant market interest.
– *0.6600*: Psychological support and an area with historical significance. A daily close below this region could prompt accelerated declines.
– *0.6570*: Additional support based on prior swing lows, often referenced in medium-term charts.
**Resistance Levels**
– *0.6675–0.6690*: Current resistance where the latest bounce ran out of momentum. Sellers have defended this area on multiple occasions.
– *0.6705*: A minor resistance marked by recent daily highs.
– *0.6730–0.6750*: Broader resistance zone which capped gains in May and early June.
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## Technical Indicators and Their Signals
Analysis of common technical indicators provides deeper insight into the prevailing trends:
– **Moving Averages**
– The 50-day moving average lies near the 0.6700 mark, reinforcing this area as a barrier to further upside.
– The 200-day moving average continues to trend below, offering longer-term support close to 0.6560, which may factor into sentiment on larger retracements.
– **Relative Strength Index (RSI)**
– The daily RSI is hovering around the 50-level, indicating a lack of clear trend momentum. Neither overbought nor oversold conditions are present.
– 4-hour RSI readings dipped toward overs
Read more on AUD/USD trading.