AUD/USD Price Forecast: Steadies around 0.7050 as bullish bias prevails

AUD/USD moves little after registering over 0.5% gains in the previous day, trading around 0.7050 during the Asian hours on Wednesday. The technical analysis of the daily chart shows that the pair is remaining within the ascending channel pattern, suggesting a prevailing bullish bias.

The AUD/USD pair holds a constructive near-term bullish bias as spot remains above both the nine-period Exponential Moving Average (EMA) and the 50-period EMA, keeping the recent recovery underpinned.

The 14-day Relative Strength Index (RSI) hovers around 59, pointing to firm but not extreme bullish momentum, while the elevated FXS Fed Sentiment Index at 145.80 suggests policy-related headlines could continue to inject volatility into the trend.

The AUD/USD pair may rise toward the upper boundary of the ascending channel around 0.7120. A sustained break above the channel would strengthen the bullish bias and lead the pair to explore the region around 0.7277, the highest since June 2022, recorded on May 6.

On the downside, the initial support rests at the nine-day EMA of 0.7013, closely backed by the 50-day EMA at 0.7007 and the lower boundary of the ascending channel near 0.7000. A breach below this channel could trigger a bearish turn, driving the AUD/USD pair toward its March 30 six-month low of 0.6833.

Aussie extends rebound but UOB flags stiff resistance near 0.7075

Strategists at UOB Group note that the Aussie has staged a stronger-than-expected comeback after its recent slide. They recall that after AUD “retreated sharply to a low of 0.6984 two days ago,” they had expected that “the sharp retreat appears to be overdone, and instead of continuing to decline today, AUD is more likely to trade in a range between 0.6980 and 0.7030.” Instead, the currency “rose to a high of 0.7049 before closing on a firm note at 0.7047 (+0.67%),” with UOB highlighting that “upward momentum is building, and AUD could continue to rise today.”

However, they caution that, based on the prevailing momentum, “any advance is unlikely to break above the major resistance at 0.7075 (there is another resistance level at 0.7060).” On the downside, UOB stresses that “to sustain the build-up in momentum, AUD must not break below 0.7020, with minor support at 0.7030.”

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