The AUDUSD has bounced back from a significant price point identified the day before, reaching new highs for 2025. It exceeded the previous peak from July at 0.66247, rising to a high of 0.6635, a level not seen since November 2024. However, this momentum slowed, leading to a price drop. The pair fell to a low of 0.65894, testing the lower end of a swing area between 0.6588 and 0.6598. Buyers stepped in at this support level, halting the decline. Prices then recovered, gaining momentum and moving back above both the July high of 0.66247 and the previous day’s high of 0.6635.

Current Session Trends

At present, prices are near new session highs around 0.66505, favoring buyers once more. The July high of 0.66247 now serves as a support level. If prices stay above this level, we may see further increases. However, if prices drop below, there could be more downside risk. Looking ahead, resistance is seen at a rising trendline near 0.6676, followed by the swing high from November 7 at 0.6683. Breaking through these levels would strengthen the bullish outlook and suggest further gains. The AUDUSD is currently at its highest levels of 2025, giving buyers an advantage for now. This price action supports strategies like buying call options with short-expiry dates. It’s crucial to see if the price holds above the old July 2025 high of 0.66247. This upward trend is backed by recent fundamental data. Australia’s unemployment rate unexpectedly dropped to 3.8% in August 2025, boosting positive sentiment for the Reserve Bank of Australia. Meanwhile, lower US inflation figures are raising speculation that the Federal Reserve may slow its tightening approach.

Analyzing Recent Market Dynamics

Despite this positive momentum, we need to be cautious. A similar attempt to rise failed just yesterday before finding support. Reviewing the charts from late 2024 reveals a pattern where an early breakout quickly reversed, trapping hopeful traders. If the price decisively falls back below 0.66247, it could signal a buy opportunity for put options, targeting around 0.6590. The key battleground in the coming weeks is likely to be between the support at 0.66247 and the key resistance near 0.6683. With the recent volatility and failed breakouts, implied volatility may increase, making strategies like straddles appealing for those expecting a big move but unsure of the direction. A solid break above the November 2024 high of 0.6683 would confirm strong bullish control. Create your live VT Markets account and start trading now.

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