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Australian Dollar Technical Forecast: AUD/USD Resilience Drives Price Action

Australian Dollar Technical Forecast: AUD/USD Resilience Drives Price Action

Tammy Da Costa, Analyst

AUD/USD Technical Outlook: Neutral

  • AUD/USDtechnical level hold firm
  • US Dollar strength remains a key catalyst for the Aussie Dollar
  • AUS employment data allows AUD to march cautiously along

AUD/USD has achieved three consecutive weeks of gains as bulls strive to retest January highs above 0.7300. After rebounding off of the key psychological level of 0.7000, bulls managed to regain confidence over the trend temporarily, allowing them to drive price action back towards the current spot of resistance at 0.7200.

Although the probability of higher rates from the Fed and rising geopolitical tensions have supported the safe-haven Dollar, higher commodity prices and a possible increase of stimulus into the Chinese economy has allowed the Australian Dollar to remain resilient against the greenback, at least for now.

AUD/USD Technical Analysis

At the time of writing, AUD/USD is currently trading within a well-defined range between 0.7000 and 0.7300 respectively which continues to hold both bulls and bears at bay. With a descending trendline suggesting that the bear trend currently remains intact, the 0.700 handle has thus far assisted in providing a solid foundation of support for the short-term move.

As prices cling to the 61.8% retracement level of the 2017 – 2020 move at 0.71335, the next level of support remains at the January low of 0.696 with resistance holding at the 23.6% Fibo level of 2021 – 2022 move.

AUD/USD Weekly Chart

Australian Dollar Technical Forecast: AUD/USD Resilience Drives Price Action

Chart prepared by Tammy Da Costa using TradingView

As price action remains above the 20-day MA (moving average), the 0.713 and 0.721 Fibonacci levels of the above-mentioned moves continue to provide firm levels of support and resistance which will likely assist in driving price action in either direction.

AUD/USD Daily Chart

Australian Dollar Technical Forecast: AUD/USD Resilience Drives Price Action

Chart prepared by Tammy Da Costa using TradingView

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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