Over the past 24 to 48 hours, the AUD/USD has experienced notable volatility near the 0.6700 mark, slightly retreating after approaching yesterday’s closing price of 0.67100. Reports indicate that the Australian dollar faced resistance near 0.6725 and failed to sustain further gains, leading to a short-term pullback to the 0.6700 level, reflecting relative weakness.

Market participants have been closely watching the upcoming US inflation data, prompting a cautious stance and causing the AUD/USD pair to tick slightly lower during the European trading session. Additionally, renewed concerns over the Federal Reserve’s independence have pressured the US dollar, allowing the Aussie to maintain a stable position around 0.67.

For the average investor, this means the market is in a holding pattern waiting for crucial data releases. While the Aussie showed some recovery attempts, uncertainty over US economic figures and geopolitical developments have prevented sustained upward moves. Put simply, it’s like students staying calm and waiting for exam questions to be revealed before deciding how to answer—investors are waiting for the next market signal to determine whether to buy or sell.

Daily Chart

The daily chart reveals a moderate uptrend for AUDUSD since the start of the year with strong support around the 200-day moving average near 0.655. Recently, the pair attempted but failed to break above the 0.6725 resistance, creating a short-term top. The MACD remains above zero, indicating bullish momentum, while the Bollinger Bands are contracting, suggesting reduced volatility and a consolidation phase as the market awaits key economic data.

1H Chart

In the last five days on the 4-hour chart, AUDUSD has been trading in a sideways range between 0.6700 and 0.6670. Short-term moving averages like the 10 and 20 EMA have flattened and crossed, showing balanced bullish and bearish forces. A small descending flag pattern has formed recently, indicating potential downside risk. The MACD is hovering near the zero line without a definitive crossover, signaling traders to watch for a breakout or breakdown to identify actionable trades.

Technical Trend:  AUDUSD is currently in a cautiously sideways consolidation phase, awaiting significant economic data to trigger a directional breakout or breakdown.

Technically, AUDUSD is consolidating near key resistance after a recent attempt to break higher stalled. While the overall short-term bullish trend remains intact, indicators like the MACD and Bollinger Bands suggest waning momentum. A confirmed break above 0.6725 would signal a return of buyers, whereas a break below 0.6650 could accelerate short-term downside pressure. Traders should closely monitor both price action and fundamental news for timely trade entries and risk management.

Today’s economic calendar features the crucial US Consumer Price Index (CPI) data release at 14:30 GMT+1, which is pivotal for AUDUSD. A better-than-expected print could boost the USD, pressuring the AUDUSD pair lower. Additionally, Australia’s Westpac Consumer Sentiment and Japan’s current account data earlier in the session offer supplementary insights but are unlikely to cause major swings by themselves.

Resistance & Support

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