AUD/USD Price Forecast: Holds position near 0.6900 due to overbought conditions

AUD/USD may retest the barrier at 0.6942, the highest since February 2023.
The 14-day Relative Strength Index is at 79, suggesting stretched momentum may limit further gains.
Primary support is seen at the lower ascending channel boundary near 0.6850.

Akhtar Faruqui FXStreet

AUD/USD remains subdued for the second successive session, trading around 0.6910 during the European hours on Tuesday. Daily chart analysis indicates that the pair is rising within the ascending channel pattern, indicating a persistent bullish bias.

The AUD/USD pair holds above the rising 50-day Exponential Moving Average (EMA), and the nine-day EMA underpins the near-term advance. The bullish EMA slope supports the broader recovery, and dip-buying interest could emerge on pullbacks toward the nine-day average.

The 14-day Relative Strength Index (RSI) at 79 (overbought) shows stretched momentum that could cap gains. RSI remains overbought, so consolidation could precede a sustained break higher.

The AUD/USD pair could retest the confluence resistance at the upper boundary of the ascending channel near the 0.6942, the highest level since February 2023, which was recorded in September 2024.

On the downside, the primary support lies at the lower ascending channel boundary around 0.6850, followed by the nine-day EMA at 0.6824. A break below this confluence would weaken the bullish bias and target the 50-day EMA at 0.6686.

(The technical analysis of this story was written with the help of an AI tool.)

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.22%	0.08%	0.42%	0.17%	0.15%	0.30%	0.17%
EUR	-0.22%		-0.14%	0.20%	-0.05%	-0.07%	0.07%	-0.05%
GBP	-0.08%	0.14%		0.36%	0.09%	0.07%	0.22%	0.10%
JPY	-0.42%	-0.20%	-0.36%		-0.26%	-0.27%	-0.14%	-0.25%
CAD	-0.17%	0.05%	-0.09%	0.26%		-0.01%	0.12%	0.00%
AUD	-0.15%	0.07%	-0.07%	0.27%	0.01%		0.14%	0.02%
NZD	-0.30%	-0.07%	-0.22%	0.14%	-0.12%	-0.14%		-0.12%
CHF	-0.17%	0.05%	-0.10%	0.25%	-0.01%	-0.02%	0.12%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.