AUD/USD Price Analysis: At cross-roads below key 200-DMA
- AUD/USD ends week down 0.33%, unable to hold above 0.6600, range-bound.
- Struggle to sustain gains above 200-DMA (0.6576); potential for upward trend watched closely.
- Key supports at 0.6551, 0.6524; rebound above 200-DMA may aim for resistances at 0.6620, 0.6652.
The AUD/USD finished Friday’s session on the back foot, down more than 0.15%, for a total of 0.33% losses in the week. At the time of writing, the pair ended at 0.6573, failing to stay above the 0.6600 figure, which exacerbated the Aussie’s drop below the key 200-day moving average (DMA).
The pair extended its sideways trading, with buyers failing to cling to the 200-DMA at 0.6576, though it seems they remain in charge. This following January’s 17 dip toward 0.6524, with the par extending its gains toward the 0.6550/0.6600 range, still unable to decisively crack the 0.6600 mark and opening the door for a pull back.
With that said, key support levels lie below the exchange rate, with the January 23 daily low of 0.6551, ahead of the January 17 swing low of 0.6524. if the pair slides below this key support level, the buyers' last line of defense would be the 0.6500 figure before diving to the November 17, 2023, low of 0.6452.
On the positive side, if buyers reclaim the 200-DMA, they could extend its rally past the 0.6600 figure toward January’s 24 high at 0.6620. The next supply zone emerges at the 50-DMA at 0.6652.
AUD/USD Price Action – Daily Chart
AUD/USD Key Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
