The Australian Dollar (AUD) may not rise significantly, expected to reach a high of 0.6560. A key resistance level at 0.6580 is likely to stay intact. Analysts from UOB Group believe that, in the long run, the AUD could trade within a range of 0.6490 to 0.6580. In the last 24 hours, the AUD increased to 0.6540, but any further gains are expected to be limited to around 0.6560. Support levels are identified at 0.6520 and 0.6510. While the AUD has surged quickly, experts think it won’t be strong enough to break through the 0.6580 barrier.

Expected Trading Range

In the next one to three weeks, attention turns to how the AUD will move within this suggested range. Although there is some momentum, a significant rise beyond 0.6580 seems unlikely. Last week, the forecast was negative, but recent gains have hinted at a shift, with the AUD climbing sharply to 0.6540. However, without stronger momentum, getting past the important 0.6580 level soon may be out of reach. With the AUD/USD now at 0.6540, the upward movement seems to be slowing down. We anticipate that the pair will trade in a new, higher range of 0.6490 to 0.6580 in the upcoming weeks. Since the key resistance at 0.6580 is likely to hold, traders could look to sell volatility using options. This view is supported by recent fundamental data. Australia’s Q3 2025 inflation report showed a slightly higher rate of 3.8%, helping the Aussie dollar, but not boosting it enough for a significant breakout. Meanwhile, the US jobs report on November 7th added 190,000 jobs—healthy but not extraordinary—curbing expectations for strong actions from the Federal Reserve and keeping the US dollar stable.

Options Trading Strategy

We’ve seen similar price trends before, especially in the fourth quarter of 2023 when the pair rose sharply and then stabilized for months. This historical pattern indicates that after a significant move like the recent one, a phase of range-bound trading often follows, strengthening the belief that the current rally may not last much longer. For derivative traders, this outlook suggests selling out-of-the-money call options with strike prices at or above 0.6580, focusing on expirations in late November or early December 2025. The recent price spike has likely increased implied volatility, making these premiums more appealing to collect. You could also define the expected range by selling puts with a strike below 0.6490 to create an iron condor or a short strangle. The main risk to this strategy is a daily close above the 0.6580 level, which would challenge the range-bound theory. We should keep an eye on upcoming statements from the Reserve Bank of Australia and any unexpected data from China, Australia’s largest trading partner. Any clear break from the predicted range would require quick reassessment of the position. Create your live VT Markets account and start trading now.

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