**AUD/USD Analysis: Navigating Key Levels and Market Forces (Credit: Original insights from XTB’s Market Analysis Desk)**
**Introduction**
The Australian dollar (AUD) is a closely watched currency, serving as both a proxy for global risk sentiment and a reflection of trends in the Asia-Pacific region and commodities markets. Against the US dollar (USD), the AUD/USD pair is among the most traded currency pairs worldwide. Its movements are influenced by a diverse range of economic indicators, geopolitical developments, central bank decisions, and broader market sentiment. On October 29, 2025, the AUD/USD exchange rate reached an important technical juncture, capturing the attention of forex traders and analysts alike.
This extended analysis reviews the pair’s recent performance, technical outlook, and the driving economic and policy factors. Insights from XTB’s “Chart of the Day,” published on October 29, 2025, are integrated with supplementary analysis and data from industry sources. The result is a comprehensive overview for traders and investors seeking to understand the next potential moves for AUD/USD.
—
**Recent Price Action and Market Context**
* XTB analysts observed notable changes in risk sentiment influencing the AUD/USD pair in late October 2025.
* The pair experienced a substantial rally, reversing the bearish trend that had dominated much of the prior month.
* This upward movement was partially attributed to improved global market sentiment and positive news from China, a key trading partner for Australia.
* As of the end of October, AUD/USD was attempting to break through technical resistance, placing the pair at a critical crossroads.
—
**Technical Analysis: Key Levels and Patterns**
A thorough technical review reveals the central price areas and chart patterns that forex traders are monitoring.
**1. Support and Resistance**
– **Resistance Levels:**
– 0.6550: Recent highs, representing a notable supply zone where sellers have historically defended positions.
– 0.6620–0.6640: Next significant resistance, aligning with the 200-day simple moving average (SMA) and a prior swing high.
– **Support Levels:**
– 0.6500: Psychological round number and a short-term support.
– 0.6460–0.6480: A previously established pivot area; also marks the recent breakout zone.
**2. Trendlines and Patterns**
– The rally in late October allowed AUD/USD to break a descending trendline, which had capped the pair since September.
– Bullish momentum is confirmed by a series of higher lows and higher highs on the four-hour and daily charts.
– The formation of a potential inverted head-and-shoulders pattern suggests further upside if neckline resistance is decisively cleared.
**3. Momentum Indicators**
– **Relative Strength Index (RSI):** Recently surpassed the 60 mark, indicating gathering bullish momentum but still below overbought territory.
– **Moving Averages:** The 50-day SMA has just turned upward, crossing above the 100
Read more on AUD/USD trading.