AUD/USD Technical Outlook: Neutral
- AUD/USD remains bounded by trendline resistance
- US Dollar strength holds the Australian Dollar at bay
- Can bulls trading AUD/USD reclaim possession of the primary trend?
The AustralianDollarhas remained under pressure against its US Dollar counterpart as traders price in rising geopolitical tensions and easing USD strength.
Although fundamental factors continue to drive risk sentiment, additional catalysts for price action include commodity prices and China’s economy which will likely continue to impact AUD/USD prices for the foreseeable future.
Visit DailyFX Education to Discover How AUD is Impacted by China’s Economy
While the Federal Reserve has taken a more hawkish stance to tackle the effects of inflation, the RBA has remained relatively dovish, hindering the Aussie’s ability to climb higher.
AUD/USD Technical Analysis
Since December 2020, AUD/USD has been on a downward trajectory as lockdowns and restrictions boosted demand for the safe-haven Dollar.
However, after rebounding off of the key psychological level of 0.70 at the end of Q4, prices have made a slight recovery towards trendline resistance which continues to hold bulls at bay.
With prices now trading around the 23.6% Fibonacci retracement level of the 2021 move at 0.723, the MACD (Moving Average Convergence/Divergence) remains below the zero line on the weekly time-frame, a potential indication that the bears are still in control of the trend, at least for now.
AUD/USD Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
While the Fibonacci levels from the above-mentioned move continues to provide additional zones of support and resistance, the 50-day moving average is currently providing an additional layer of support with resistance holding firm at 0.73
AUD/USD Daily Chart
Chart prepared by Tammy Da Costa using TradingView
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
