The AUDUSD pair rose by 0.50% today due to stronger commodity prices and a weaker U.S. dollar. Gold increased by $54, or 1.52%, and silver grew by 0.86%, helping the Australian dollar. Technically, the AUDUSD briefly broke through a swing area between 0.65889 and 0.65946, reaching a peak of 0.65981. However, momentum weakened, causing it to fall back below 0.65889. This swing area also capped Friday’s rally, with sellers coming in again. This pattern shakes buyer confidence and gives sellers a chance to challenge any breakout attempts.

Key Support Levels

The main support level to watch is the swing high from August 14 at 0.6567. If it dips below this level, it might target the September 1 swing high at 0.6559. Breaking below both levels could lead to more selling as buyers could change their strategy. If buyers can push above the swing area at 0.65946, they may target the July high at 0.66247, which is this year’s peak last reached in November 2024. Today, September 8, 2025, the AUDUSD shows signs of weariness after failing to hold above the crucial resistance at 0.6595. This marks the second time sellers have intervened at this level recently, disappointing buyers and opening the door for a potential drop. The support from rising gold prices isn’t strong enough to overcome this resistance.

Trading Opportunities

Considering the repeated struggles at resistance, we might look at buying put options with strike prices set below the initial support level of 0.6567. This view is supported by China’s industrial production data for August 2025, which came in at 4.1%, slightly below expectations and raising concerns about demand for Australian exports. We saw a similar trading pattern in late 2024 where stalls near the 0.6600 level led to a significant decline. On the other hand, if the AUDUSD breaks firmly above 0.6595, this would negate the bearish outlook and could spark a strong rally towards the July high of 0.66247. This upward movement may stem from continued weakness in the U.S. dollar, especially after last week’s inflation report showed core CPI falling to a three-year low of 2.8%. Traders expecting this breakout could consider buying call options with a strike near 0.6600 to benefit from the possible rise. This standoff at a key technical point suggests an increase in volatility could be on the horizon. The RBA’s meeting minutes from August 19, 2025, revealed differing views on future interest rate hikes, indicating their upcoming policy decision could be a significant catalyst. Therefore, setting up option strategies like straddles could be an effective way to trade a potential big price swing without committing to a specific direction. Create your live VT Markets account and start trading now.

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