AUD/USD Price Forecast: Bearish bias persists as pair falls below 0.6900

  • The nine-month low at 0.6833 could provide primary support for AUD/USD.
  • At 35, the 14-day Relative Strength Index suggests momentum may be approaching exhaustion.
  • At 0.6970, the nine-day EMA presents the first resistance hurdle.

Trading near 0.6880 in Friday’s Asian session, AUD/USD is extending its decline into a second consecutive day. On the daily chart, the pair continues to trade within a descending channel, with technical analysis pointing to a prevailing bearish bias.

With spot below both the nine-day and 50-day Exponential Moving Averages (EMAs), the near-term outlook for AUD/USD remains bearish. Both the short- and medium-term EMAs sit above the price, suggesting that rallies are likely to attract selling. Meanwhile, the 14-day Relative Strength Index (RSI), near 35, remains outside oversold territory, indicating continued downward pressure without capitulation. A further headwind comes from the latest FXS Fed Sentiment Index reading above 144, which reinforces the view that the market remains inclined to sell into rebounds.

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Initial support for AUD/USD could come at 0.6833, the nine-month low reached on 30 March. Should that level give way, the pair would have scope to move towards the descending channel’s lower boundary, near 0.6660.

A recovery in AUD/USD could bring a test of primary resistance at 0.6970, the nine-day EMA. Beyond that, the 50-day EMA at 0.7018 offers another hurdle, ahead of the descending channel’s upper boundary near 0.7030. Clearing the channel would support a move towards the area around 0.7277, the highest level since April 2022.

Chart Analysis AUD/USD
AUD/USD Trades Within a Descending Channel: Daily Chart

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

Australian Dollar Records Its Largest Decline Against the US Dollar Today

Against the major currencies listed below, the Australian Dollar (AUD) recorded its weakest performance versus the US Dollar today. The table sets out its daily percentage changes against each currency.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.32% 0.25% 0.21% 0.27% 0.70% 0.60% 0.05%
EUR -0.32% -0.08% -0.14% -0.04% 0.38% 0.28% -0.27%
GBP -0.25% 0.08% -0.04% 0.04% 0.46% 0.36% -0.20%
JPY -0.21% 0.14% 0.04% 0.09% 0.51% 0.41% -0.15%
CAD -0.27% 0.04% -0.04% -0.09% 0.42% 0.32% -0.24%
AUD -0.70% -0.38% -0.46% -0.51% -0.42% -0.09% -0.65%
NZD -0.60% -0.28% -0.36% -0.41% -0.32% 0.09% -0.54%
CHF -0.05% 0.27% 0.20% 0.15% 0.24% 0.65% 0.54%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. For instance, choosing the Australian Dollar on the left and following its row across to the US Dollar gives the percentage change for AUD (base)/USD (quote) in the intersecting cell.