In the past 24 to 48 hours, the AUD/USD pair experienced notable strength, trading around the 0.6900 level and closing yesterday at approximately 0.7007, up from the previous day’s 0.6913. Overall, market sentiment remains upbeat with the Australian dollar holding near a 16-month high, reaching an intraday peak of 0.7018, demonstrating strong buying momentum.

The report titled “USD/JPY, AUD/USD, Platinum and S&P 500: All Look Ready to Make Bigger Moves” highlights that while USD/JPY faces central bank interventions and steady risk-off conditions, the AUD/USD benefits from ongoing US policy uncertainty and robust Australian economic data. Furthermore, another headline “AUD/USD Forecast: Fed Concerns Lift Aussie Ahead of CPI, FOMC” emphasizes that ahead of the Federal Reserve meeting, a softer US dollar is boosting the Aussie. These factors together show that investors are increasingly turning to AUD as a risk exposure amid uncertainty.

For the average investor, this rally means the Australian dollar is being buoyed by a mix of strong domestic employment figures and a dovish Fed stance, which is increasing demand for the currency in the short term. Simply put, the AUD’s upward momentum is fueled by positive fundamentals and a weaker greenback, with upcoming Australian CPI data and the Federal Reserve’s policy decisions set to be key drivers for further moves.

Daily Chart

The daily chart reveals a sustained uptrend for AUDUSD, with prices ascending from around 0.6600 and breaking above key long-term moving averages — the 50-day and 200-day MA sitting at 0.66355 and 0.65415 respectively. The currency pair is trading above 0.7000, indicating strong bullish momentum. Bollinger Bands show price hugging the upper band, implying increased volatility and upward momentum. The MACD indicator remains bullish with strengthening histogram bars, reaffirming optimistic long-term outlooks. This suggests an ongoing uptrend, suitable for long-term strategic positioning.

1H Chart

In the last 3-5 days on the hourly chart, AUDUSD experienced several minor pullbacks but maintained strong support within the 0.6900 to 0.7010 range. Short-term moving averages are trending upwards, with the Bollinger Bands’ middle band providing solid support. A recent MACD bullish crossover and a bullish engulfing candlestick pattern suggest enhanced short-term buying pressure, indicating a likely continuation of the uptrend in the next 24 hours. Traders can consider these signals for tactical entry points.

Technical Trend:  Cautiously Bullish

Technically, AUDUSD is in a robust bullish phase with daily and hourly trend confirmations. Bollinger Bands and MACD support sustained momentum, while a recent bullish engulfing candle signals further upside potential beyond the 0.7010 resistance. Trading volume remains stable, maintaining positive momentum. Investors should watch for breakouts and pullback support levels carefully, positioning cautiously with long exposure.

Today’s economic calendar features events from Sweden, France, Spain, Poland, and the US but none have a direct significant impact on AUDUSD. No major Australian or US data relevant to the AUDUSD pair are scheduled, making market sentiment and risk appetite the main drivers for price action in the near term rather than economic release surprises.

Resistance & Support

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