**AUD/USD Daily Technical Analysis: Bullish Momentum Faces Resistance**
*Adapted and expanded from an article by ActionForex.com, with additional insights for clarity and depth.*
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**Overview**
The Australian Dollar (AUD) continues to show strength against the US Dollar (USD), with the AUD/USD pairing displaying positive momentum amid a backdrop of economic data and market sentiment. As of the most recent session, the pair extended its gains, probing significant resistance zones. Yet, traders are carefully watching for signals that will determine if this upward movement can be sustained or if sellers will step back in.
This article provides a deep dive into the technical outlook for AUD/USD, including key support and resistance levels, indicators to watch, and the broader fundamental context influencing the pair.
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**Recent Price Action**
– The AUD/USD pair extended its recovery, breaking above the intraday resistance around 0.6705.
– This move follows a multi-session advance from the recent low near 0.6579, indicating continued buying interest.
– Despite the bullish undertone, the currency pair is approaching critical resistance levels that may pose a challenge to further upside.
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**Key Technical Levels**
– **Immediate Resistance:** 0.6713 (June high), which also coincides with the 61.8 percent Fibonacci retracement level from the April highs to lows.
– **Next Resistance:** 0.6738 (peak from earlier in June), and a psychological round number resistance at 0.6750.
– **Further Resistance:** 0.6800 remains an important medium-term barrier, having capped advances multiple times throughout the past year.
– **Immediate Support:** 0.6683 (recent minor pullback), and psychologically at 0.6650.
– **Major Support:** 0.6604 (recent swing low), reinforced by 0.6579 (June low), which serves as a crucial line for bullish traders.
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**Technical Indicators**
– **Momentum:** The daily Relative Strength Index (RSI) is inching towards overbought territory but has not crossed the threshold, indicating that further gains remain possible before a technical correction.
– **Moving Averages:** Price action is above the 20-day and 50-day Exponential Moving Averages (EMAs), suggesting a bullish bias in the short to medium term.
– **MACD:** The Moving Average Convergence Divergence (MACD) remains in bullish territory. The histogram is maintaining its positive trajectory, which would suggest the potential for ongoing upward movement.
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**Pattern Analysis**
– The AUD/USD pair’s rebound from 0.6579 signifies a potential change in market sentiment. The upside momentum, however, faces significant hurdles near 0.6713 and, more substantially, the June highs near 0.6738.
– A clean break above these levels would confirm the continuation of the bullish trend and open up prospects for further gains towards 0.6800.
– Conversely, failure to clear this
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