After sliding from its .7200 highs, AUD/USD is now closing in on a key support zone.
Does the pair find its footing here and bounce from this major area of interest?
Or do the bears stay in control long enough to push through a couple more support levels?
AUD/USD Daily Forex Chart Faster with TradingView
The U.S. dollar has been making it rain as the U.S.-Israel war on Iran and a higher-for-longer interest rate outlook keep demand for the Greenback well supported.
Meanwhile, the risk-sensitive Australian dollar is struggling to attract buyers, as traders brush aside hawkish RBA expectations and lean more into growth worries and broader risk aversion.
Will this week’s headlines be enough to turn the tide back in favor of risk-taking?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Australian dollar and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/USD kicked off the year with a bullish breakout, but ran into a ceiling near .7200, chopped around .7000, and has since rolled over toward the .6850 to .6900 area.
If you’re watching for the next support zone, keep an eye on .6800, where the 50% Fibonacci retracement lines up with the daily 100 SMA.
Think AUD/USD still has room to fall before buyers step in? Then the .6700 psychological handle is worth a look. That area sits near the S3 (.6705) Pivot Point, the 61.8% Fibonacci level, and the 200 SMA, right around a trend line support that’s been in play since April 2025.
A bounce from either zone could pull in buyers and open the door for a move back toward the .7000 to .7200 highs.
But if the selling keeps going and price breaks cleanly below that trend line support, then a deeper move toward the .6600 to .6500 consolidation zone comes into play.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on AUD/USD’s trend retracement opportunity. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
