**AUD/USD Forex Analysis: Bulls Take Control as Uptrend Strengthens**
*Original article credit: Adam Lemon, MENAFN. Supplemented with insights from DailyFX and Investing.com.*
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### Overview
The AUD/USD currency pair has recently witnessed a notable bullish momentum, reflecting a shift in market sentiment favoring the Australian Dollar against the US Dollar. This trend is underpinned by several fundamental and technical factors, signaling further opportunities for traders and investors. This article delves deep into the prevailing dynamics influencing AUD/USD, highlights key support and resistance levels, and outlines potential trading strategies based on the current market landscape.
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### Recent Market Context
In recent trading sessions, AUD/USD has shown impressive resilience, steadily gaining ground as market bulls prevail. The resurgence in the Australian Dollar is attributed to a combination of global risk appetite, robust commodity prices, and shifting expectations regarding monetary policy in both Australia and the United States.
#### Key Background Drivers:
– **Global Risk Sentiment:** A positive shift in the global risk environment has compelled market participants to favor riskier assets, including the Australian Dollar, which is often seen as a proxy for risk-on sentiment.
– **Commodity Price Support:** Surge in key Australian exports, particularly iron ore and coal, has buoyed the currency, reflecting the importance of export revenues to the Australian economy.
– **Central Bank Policies:** The Reserve Bank of Australia (RBA) has maintained a relatively neutral stance, while market participants closely monitor the US Federal Reserve’s guidance for clues on interest rate trajectories.
– **Covid-19 Recovery:** Australia’s effective handling of pandemic-related disruptions has instilled further confidence among investors, supporting domestic growth prospects.
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### Technical Analysis
#### Current Price Action
As of the latest update, AUD/USD remains entrenched in an uptrend, trading above several important moving averages. The consistent appearance of higher highs and higher lows on the price chart signals sustained bullish momentum.
#### Key Technical Levels
– **Support Levels:**
– 0.6920: Previous hourly low provides immediate support in case of minor retracements.
– 0.6880: Acts as a secondary base, aligning with past consolidation and a former resistance now turned support.
– 0.6850: A deeper support area, instrumental if broader risk sentiment deteriorates.
– **Resistance Levels:**
– 0.6980: This psychological round number coincides with recent session highs and could be the first major obstacle for further upside.
– 0.7040: Represents a multi-week peak and pivotal resistance, potentially triggering profit-taking among short-term traders.
– 0.7100: A critical barrier, marking an area where sellers have previously gained traction.
#### Candlestick Patterns and Momentum Indicators
– **Candlestick Analysis:** The AUD/USD pair has been forming bullish candles, particularly on the 4-hour and daily charts, suggesting accumulation and upward drive.
– **Moving Averages:**
– The 50-period
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