AUD/USD Price Forecast: RSI nears 50 as double bottom forms

• The RBA’s hawkish stance and a weaker US Dollar underpin the Australian Dollar, lifting AUD/USD.
• Buyers appear to be recovering ground as a possible double bottom takes shape.
• Key daily moving averages still cap the pair despite improving momentum.

At around 0.7002 at the time of writing, AUD/USD is trading close to one-week highs, edging up on Tuesday for a third consecutive day. The US Dollar (USD) has retreated from the 18-month highs reached last week, lending support to the pair, while the hawkish stance of the Reserve Bank of Australia (RBA) continues to underpin demand for the Australian Dollar (AUD).

A possible double bottom around 0.6900 points to an improving technical outlook, with buyers appearing to return gradually after several weeks of selling pressure. The recovery nevertheless remains constrained, as AUD/USD is still trading beneath key moving averages on the daily chart.

With the Moving Average Convergence Divergence (MACD) slightly positive and the Relative Strength Index (RSI) rebounding from oversold levels to around 49, selling pressure appears to have subsided. Buyers, however, have not yet established firm control.

The first upside hurdle lies at 0.7026, the 38.2% Fibonacci retracement, ahead of the 100-day SMA at 0.7035 and the 200-day SMA at 0.7047. More substantial resistance sits around the 50.0% retracement at 0.7067 and the 50-day SMA at 0.7077. Beyond these, a broader resistance band comprises the 61.8% retracement at 0.7107, the 78.6% level at 0.7165 and the cycle high area near the 100.0% retracement at 0.7238.

The 23.6% retracement at 0.6976 provides the nearest downside support. Should this level give way, the pair could revisit the 0.6895-0.6900 support area, the site of the potential double bottom.

(The technical analysis of this story was written with the help of an AI tool. Know more.)