AUDUSD picks up momentum after experiencing a decline of more than 1% earlier this week

AUDUSD creeps higher on Friday as traders take profits from the recent four-day decline. Today’s uptick marks the first gain of the week, although the pair is still set for a weekly loss exceeding 1%.

Technical indicators on the daily chart present a mixed picture, lacking a clear directional signal. A move above and close beyond the 0.6650 zone (comprising the 10-day moving average and 50% retracement of the 0.6714 to 0.6591 range) is viewed as essential to sustain the recovery, potentially leading to retests of upper resistance levels at 0.6676 (representing the Fibonacci 61.8% retracement of the 0.6871 to 0.6362 range) and 0.6713 (the weekly cloud top).

Failure to breach these levels may leave the downside exposed, with any limited upward movements likely indicating preparations for a fresh downward push.

Key support levels lie at the 0.6580 to 0.6560 range (encompassing last week’s low, the Fibonacci 38.2% retracement of the 0.6362 to 0.6714 range, and the convergence of the 100-day and 55-day moving averages). A breach of these supports would increase the risk of a deeper correction.

Res: 0.6644; 0.6667; 0.6676; 0.6750
Sup: 0.6592 0; 6580; 0.6560; 0.6538