AUD/USD eyes breakout above 0.6500 amid weak US Dollar
The post AUD/USD eyes breakout above 0.6500 amid weak US Dollar appeared on BitcoinEthereumNews.com.
The Australian Dollar hits a fresh weekly high near 0.6480, up over 1.20% on the day. The 0.6500 psychological level and descending trendline continue to act as key resistance. AUD/USD holds firmly above the 21-day EMA at 0.6414, reinforcing short-term bullish bias. The Australian Dollar (AUD) pushes higher against the US Dollar (USD), reaching a fresh weekly high near 0.6480 on Friday, up more than 1.20% on the day. The AUD/USD pair is gaining ground amid broad-based US Dollar weakness and resilient risk sentiment, but despite the bullish tone, the pair remains trapped within a tight range. The upside faces strong resistance from a descending trendline and the 0.6500 psychological barrier, a level that has repeatedly capped gains this month. At the same time, the Aussie is drawing additional strength from encouraging signals on the global trade front. China’s Foreign Ministry confirmed that Beijing and Washington have agreed to maintain open communication channels following a high-level diplomatic exchange. From a technical standpoint, price action over the past few weeks has taken the shape of a bullish pennant, a technical chart pattern that often signals continuation after a strong upside move. This pattern comes on the back of the pair’s sharp rebound from April’s low near the 0.5900 psychological mark. The choppy price action in recent days suggests that bulls are cautious before placing fresh bets. The buyers have managed to keep the pair above the 0.6400 round figure, a former resistance turned support, which closely coincides with the 21-day Exponential Moving Average (EMA) at 0.6414. AUD/USD has consistently held above this key support throughout May, indicating buyers are still in control. The price has been tightening within converging trendlines, and a breakout above the upper boundary of the pennant around the 0.6480–0.6500 region could be the catalyst for a move…
Filed under: News - @ May 23, 2025 8:23 pm