AUDUSD extends its rally for a fifth consecutive session, approaching key resistance levels

AUDUSD extended its strong rally into a fifth consecutive session on Tuesday, reaching a two-week high, as continued weakness in the US dollar and firmer commodity prices provided solid support for the Aussie dollar.

The technical outlook on both daily and weekly charts has turned increasingly bullish. Most daily moving averages have shifted to a positive setup, while strengthening momentum indicators add to the optimism. Additionally, last week’s large bullish candle formed a bullish engulfing pattern, reinforcing signals of a potential trend reversal.

The pair is now approaching key resistance at the 0.6400 zone, with a decisive break above this area — and the nearby 0.6428 Fibo level (50% retracement of the 0.6942 to 0.5914 downtrend) — expected to confirm the breakout and pave the way for further gains.

However, caution is advised as daily indicators approach overbought territory, suggesting the rally could temporarily pause for consolidation. On the downside, broken support levels at the 38.2% Fibo retracement and the 10-day moving average (0.6307/0.6290) should act as strong support and maintain the bullish structure.

Res: 0.6400; 0.6428; 0.6481; 0.6500
Sup: 0.6350; 0.6307; 0.6290; 0.6248