AUD/USD Resilience Boosts Price Action

AUD/USD Technical Outlook: Neutral

  • EUR/USDtechnical level hold on
  • The strength of the US dollar remains a key catalyst for the Australian dollar
  • AUS jobs data keeps AUD going cautiously

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

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

AUD/USD technical analysis

At the time of writing, the AUD/USD is currently trading in a well-defined range between 0.7000 and 0.7300 respectively, which continues to keep bulls and bears at bay. With a descending trendline suggesting that the downtrend currently remains intact, the 0.700 handle has so far helped provide a solid base of support for the short-term move.

As prices hold onto 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 Fibo level, 6% of the 2021-2022 movement.

AUD/USD weekly chart

Chart prepared by Tammy DaCosta using TradingView

While price action remains above the 20-day MA (moving average), the 0.713 and 0.721 Fibonacci levels of the moves mentioned above continue to provide firm levels of support and resistance that will likely help. to move prices in both directions.

AUD/USD daily chart

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

Chart prepared by Tammy DaCosta using TradingView

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

Contact and follow Tammy on Twitter: @Tams707

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