The AUDUSD rose by 0.84% today, breaking away from a technical convergence of moving averages. The current price has surpassed several important levels: the 100-hour moving average (MA) at 0.64403, the 200-day MA at 0.6445, and the 200-bar MA on the 4-hour chart at 0.6450. Previously, these moving averages served as points of consolidation and resistance. Now, with this upward movement, the AUDUSD may retest the swing area between 0.6493 and 0.6500, which acted as a resistance level in May. Since then, sellers have pushed the price back down from this high.

Potential Targets For Traders

Traders will keep an eye on recent highs and lows, especially around 0.6470. If the price dips below this, the moving average cluster between 0.6440 and 0.6450 could be a target. The Australian dollar has seen a notable rise against the US dollar. The exchange rate has moved past technical levels that had previously restrained its growth. The price had been closely trading around a compression zone formed by the 100-hour, 200-day, and 200-bar moving averages on different timeframes. By breaking through all three, the pair exited its recent sideways pattern, indicating a significant change in short-term sentiment. These moving averages, like the 0.6440 level on the hourly chart, help us assess if prices are accepted or rejected over a given swing. When resistance levels based on slower-moving data are convincingly broken, the market often aims to run with that momentum until it faces resistance from traders. This hesitation usually shows up as failed retests or quick selling wicks in the next range. After today’s movement, attention shifts to the area just below the 0.6500 mark. This isn’t just a psychological level; it represents a zone where there was strong selling last month. The previous selling suggests that if prices revisit this area, they may encounter those same sellers again. Traders previously defended this level, and many of those interests are likely still active.

Focus On Key Technical Levels

For now, we are closely monitoring the 0.6470 region, which is establishing itself as an intraday control point. If we see retracements building up, this area could be crucial in determining whether we face a deeper pullback or just a minor pause. If the price falls below this level, it would clear the way back to the 0.6440 to 0.6450 moving average zone, which hasn’t been fully invalidated. This is where traders might reassess their positions instead of chasing new highs. Traders might find it helpful to track activity over the next few sessions in hourly intervals. The upper band near 0.6500 and the 0.6450 cluster below are likely extremes. Any price action in between could be influenced by positioning changes ahead of significant data or shifts in USD sentiment. How the price reacts at these levels will indicate whether the move is continuing or slowing down. Momentum traders may tighten their trailing stops on new long positions unless there are quick advancements past resistance. If there is a steady move through the 0.6493-0.6500 area without any rejection, it may indicate that this region is no longer viewed as a ceiling. However, we must observe trading behavior at these levels—pay attention to volume and reversals—to assess the strength of this movement. As it stands, this recent rise gives buyers a short-term advantage, but only if intraday dips remain small and responsive. Stay focused on price movements against established technical markers, and let the market’s response—rather than assumptions—guide your next decisions. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now