**AUD/USD Price Moves: Analysis and Forecast Around 0.7050 After EMA Break**
*Original reporting credit: FXStreet News Team*
—
## Introduction
The AUD/USD currency pair often draws significant attention from forex traders because of its sensitivity to both economic data from Australia and the United States and broader global risk sentiment. Recently, the pair experienced notable volatility following a break below the nine-day Exponential Moving Average (EMA), hovering around the 0.7050 level. This article explores the current technical formations, recent price actions, key drivers, market sentiment, and factors to watch that may impact the pair’s next moves. Drawing from the latest updates from FXStreet as well as additional commentary from financial analysts at DailyFX and Reuters, we aim to provide a comprehensive outlook for traders and investors.
## Recent Price Performance
AUD/USD recently traded near 0.7050, experiencing a downturn after breaking beneath its nine-day EMA. This technical move is significant as the EMA often acts as a short-term trend signal. Key performance highlights include:
– The pair fell below the immediate short-term support level provided by the nine-day EMA
– Sellers took control in the market, pushing prices further toward support zones.
– Volatility has intensified due to macroeconomic releases and shifting investor sentiment.
– Attention remains on whether the pair can find stability above the next technical support or continue its downward trajectory.
## Technical Analysis
Technical indicators play a critical role in short-term trading strategies, especially for pairs like AUD/USD. Here is an in-depth review of the main chart patterns and levels currently in play:
### Moving Averages
– After breaking below the nine-day EMA, the pair’s short-term bias has shifted bearish.
– 21-day EMA and 50-day Simple Moving Average (SMA) are the next areas to watch for directional clues.
– A sustained close below these moving averages would confirm additional downside risk.
### Support and Resistance Levels
– Immediate support levels are seen at 0.7040, which coincides with demand zones from previous sessions.
– Further support resides at 0.7025, representing an area where buyers previously entered the market.
– On the upside, the first barrier is the former support near the nine-day EMA, followed by resistance at 0.7090 and 0.7120.
### Oscillators
– Relative Strength Index (RSI) has dipped toward the neutral-oversold boundary, showing increasing selling momentum but not yet extreme bearishness.
– MACD signals have flipped negative, aligning with the current short-term downtrend.
### Candlestick Patterns
– Recent sessions recorded larger bearish candles, indicating strong selling pressure.
– Absence of reversal patterns suggests caution for long entries until further bullish confirmation emerges.
## Fundamental Drivers
The trajectory of the AUD/USD pair depends not just on technical patterns but also on economic releases and macroeconomic sentiment in both Australia and the US. Let’s evaluate the recent and upcoming data affecting the pair:
### Australian
Read more on AUD/USD trading.