AUDUSD Corrects Lower but Holds Its Bullish Technical Bias
Key Takeaways
- •AUDUSD held support near 0.7070 last week and then moved higher from that base.
- •The pair reached 0.7180 and fell short of the next resistance zone near 0.71936-0.7200.
- •Today’s decline has been limited, with the trading range only about 23 pips.
- •Gold rose another $70 to $4,672, its highest level since mid-May.
- •A break below the August 17 high near 0.7129 and the 100-hour moving average at 0.71262 would weaken the bullish outlook.
AUDUSD based last week just ahead of its 100-day moving average and the 50% retracement near 0.7070. Holding that key support gave buyers the go-ahead to push the pair higher.
The first upside move last week revisited the August 17 high near 0.7129 before the pair consolidated. A second push higher was supported by the rising 100-hour moving average, and the break to new weekly highs was helped by sharply higher commodity prices, including gold. That commodity link matters for this pair: Australia is one of the world's largest gold producers, and the Australian dollar is widely treated as a commodity-linked currency, so raw-material strength is a familiar supportive backdrop for AUD bulls. AUDUSD ultimately reached 0.7180, stopping short of the next key target area between 0.71936 and 0.7200.
Today, price action has turned more corrective, with AUDUSD trading lower in an up-and-down session. However, the day's trading range spans only around 23 pips, suggesting sellers have yet to take meaningful control of the market.
What is somewhat notable is that AUDUSD is lower despite gold continuing to build on last week's strong gains. Gold is up another $70, or 1.51%, at $4,672, after reaching a high of $4,680.92. That puts gold at its highest level since mid-May, with the next major upside target at the 50% retracement of the decline from the 2026 high at $4,768.
From a technical perspective, AUDUSD's bullish bias remains intact. Key support is defined by the August 17 high near 0.7129 and the rising 100-hour moving average at 0.71262. These hourly moving averages act as short-term trend reference lines that many intraday traders use to judge whether buyers or sellers hold momentum. It would take a move below that area to give sellers some hope — and more control. If the 100-hour moving average is broken, the next downside target would be the 200-hour moving average near 0.7103.
Until then, the price may be correcting, and the inability to extend higher despite gold's continued surge is something buyers will want to monitor. The disconnect is worth noting precisely because the two markets have moved broadly in step during this leg higher. Nevertheless, sellers have not taken back control. Buyers still hold the stronger technical hand as long as the price remains above the 100-hour moving average.
Source: ForexLive
