The AUDUSD has recently crossed above the 100-day moving average and the 100-bar and 200-bar moving averages on the 4-hour chart. This rise indicates a positive trend, with buyers gaining strength by the end of the trading session. The currency moved above the 100-bar MA at 0.6494 and the 200-bar MA at 0.6504 on the 4-hour chart, boosting trader confidence. These previously restrictive averages now act as short-term support. Staying above this range supports continued upward movement.

Upcoming Technical Targets

Now, let’s look at the upcoming targets. The first challenge for the AUDUSD is at 0.6541, a recent swing level. If it breaks this level, the pair could reach a swing high of 0.6567 from two weeks ago. Further resistance is seen between 0.6586 and 0.6595, an area that has reversed price before. A strong push past this resistance could shift focus to the year’s high of 0.6625 reached in July. If we get to this level, it would suggest a longer-lasting positive trend, confirming the breakout traders are watching for. The recent move above the key level of 0.6504 shows a clear shift in momentum, turning previous resistance into new support. This indicates buyers are in control after defending the 100-day moving average earlier this week. Any drop toward the 0.6494-0.6504 range should be seen as a potential buying opportunity. Recent economic data backs this technical strength. Australia’s quarterly CPI data, released on August 26, 2025, was higher than expected at 3.1%, indicating the Reserve Bank of Australia isn’t in a rush to cut interest rates. Meanwhile, US jobless claims rose slightly to 245,000, suggesting a cooling U.S. economy.

Favorable Backdrop From Commodities

There’s also a positive backdrop from commodities, which play a big role in the Australian dollar’s strength. Iron ore prices have risen back above $120 per tonne, thanks to signals of stabilizing industrial demand. This provides additional support for a stronger Aussie dollar against the U.S. dollar. Given this bullish technical and fundamental situation, traders may want to consider buying call options to benefit from potential upside. A strike price around 0.6550 with a late September 2025 expiration would expose traders to possible moves toward the 0.6567 and 0.6595 resistance levels. The clear support near 0.6500 provides a well-defined risk level for this strategy. Reflecting on the range-bound trading that dominated much of 2025, a decisive break above the 0.6595 resistance zone would be significant. Such a move would confirm a broader bullish breakout, directing attention to the year-to-date high at 0.6625. Traders in futures may see a close above this zone as a signal to add to long positions. Create your live VT Markets account and start trading now.

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