AUD/USD Price Analysis: At cross-roads below key 200-DMA

The AUD/USD closed the week with a 0.33% decline, struggling to maintain levels above 0.6600 and remaining within a range-bound pattern. The pair faced challenges in sustaining gains above the 200-day moving average (DMA) at 0.6576, prompting close monitoring of potential upward trends.

Closing the week at 0.6573, the AUD/USD experienced a more than 0.15% drop on Friday, accumulating a total loss of 0.33% throughout the week. The inability to stay above the 0.6600 mark intensified the downward movement, leading to a breach below the crucial 200-day moving average.

Despite sideways trading, buyers struggled to hold onto the 200-DMA at 0.6576, indicating a tussle for control. Following a dip toward 0.6524 in January, the pair made gains within the 0.6550/0.6600 range but faced difficulty decisively surpassing the 0.6600 threshold, creating possibilities for a retracement.

Key support levels are identified beneath the current exchange rate, including the daily low of 0.6551 on January 23 and the swing low of 0.6524 on January 17. A break below these levels would leave buyers with a final defense at the 0.6500 mark before potentially dropping to the November 17, 2023, low of 0.6452.

On a positive note, if buyers manage to reclaim the 200-DMA, a potential rally could extend beyond the 0.6600 mark, targeting the high of January 24 at 0.6620. Further upward movement may encounter resistance at the 50-DMA, positioned at 0.6652.

AUD/USD Price Action – Daily Chart

AUD/USD Key Levels

AUD/USD