AUD/USD Pair Price Analysis: Struggling Against 0.6670 Resistance, Aussie Buyers Face Challenges Ahead

<p>The AUD/USD pair, as observed in the AUD/USD price analysis, finds itself in a precarious position as it persistently grinds higher, testing the conviction of Aussie buyers who have experienced a three-day winning streak. However, this upward momentum encounters a formidable challenge in the shape of a notable resistance level at 0.6670. Traders are closely monitoring the market, with their focus shifting to the upcoming Reserve Bank of Australia (RBA) Interest Rate Decision, which introduces an element of caution and uncertainty into the ongoing price action.</p>

<p>The recent positive performance of the AUD/USD pair has been underpinned by its ability to rebound from the 100-Hour Moving Average (HMA). This resilient response has reassured buyers and suggests that the pair still maintains strength in its upward bias. Furthermore, it has successfully broken a downward-sloping resistance line that originated on June 16, now assuming the role of a support level around 0.6620. These factors contribute to the overall bullish sentiment surrounding the pair.</p>

<h2>Amidst a three-day winning streak, AUD/USD grinds higher but faces resistance at 0.6670, prompting careful assessment ahead of RBA decision</h2>

<p>However, despite these encouraging signs, the AUD/USD pair encounters an immediate challenge in the form of an upward-sloping trend channel that has taken shape since the previous Wednesday. This channel, spanning from 0.6670 to 0.6615, presently acts as a barrier to further upside potential. Traders are closely monitoring whether the pair can breach this channel and establish sustained momentum.</p>

<p>In order to validate a significant breakthrough beyond the 0.6670 resistance level, the AUD/USD pair must overcome additional hurdles. These include surpassing the 200-Hour Moving Average (HMA) located around 0.6690 and breaching the psychological level of 0.6700. Only by surpassing these levels can the bulls gain a stronger conviction in the pair’s upward trajectory.</p>

<p>Looking ahead, should the AUD/USD pair successfully clear the 0.6670 resistance and navigate the aforementioned obstacles, it may encounter further resistance at the previous weekly high of 0.6720. A decisive move beyond this level could pave the way for further gains towards the round figure of 0.6800 and even the last monthly peak near 0.6820, presenting potential opportunities for bullish traders.</p>

<figure><img decoding="async" width="1024" height="446" src="https://edge-forex.com/wp-content/uploads/2023/07/picture3-1024×446.png" alt="" class="wp-image-8415" srcset="https://edge-forex.com/wp-content/uploads/2023/07/picture3-1024×446.png 1024w, https://edge-forex.com/wp-content/uploads/2023/07/picture3-300×131.png 300w, https://edge-forex.com/wp-content/uploads/2023/07/picture3-768×335.png 768w, https://edge-forex.com/wp-content/uploads/2023/07/picture3.png 1207w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption><strong>AUD/USD Hourly Chart</strong><br>Source: FXS</figcaption></figure>

<p>On the other hand, in the event of a downside move, immediate support is expected at the 100-HMA, positioned near 0.6645, followed by the previous resistance line, now turned support, at 0.6620. These levels serve as crucial barriers against any short-term bearish pressure that may emerge. In the event of a stronger bearish sentiment, the bottom line of the trend channel, approximately 0.6615, and the monthly low around 0.6595 will act as the final lines of defense for the Aussie bears.</p>

<p>As the AUD/USD pair navigates its current price levels and confronts critical resistance and support zones, traders and investors remain watchful, employing careful analysis and strategy to capitalize on potential opportunities while mitigating risks. The outcome of the upcoming RBA Interest Rate Decision will play a vital role in shaping the pair’s future trajectory, making it a focal point of market attention in the days to come.</p>

<p>Market participants eagerly anticipate the RBA’s Interest Rate Decision, which carries significant implications for the AUD/USD pair. The central bank’s policy stance and accompanying statement can provide crucial insights into the future direction of interest rates and monetary policy in Australia. This, in turn, has the potential to impact the value of the Australian dollar against its US counterpart.</p>

<p>With the recent positive performance of the AUD/USD pair, traders are cautiously optimistic about the potential outcomes of the RBA meeting. The pair’s ability to bounce off the 100-HMA has instilled confidence among buyers, suggesting that the bullish momentum may continue. However, the resistance level at 0.6670 looms large and must be overcome for sustained upward movement.</p>

<p>As traders assess the landscape, they are closely monitoring the price action within the upward-sloping trend channel. This technical pattern adds an additional layer of complexity to the market dynamics, as it constrains the pair’s immediate upside potential. A break above the upper boundary of the channel would be a significant development, indicating a shift in sentiment and potentially attracting more buyers.</p>

<p>To further validate the bullish case, the AUD/USD pair must surpass the 200-HMA and the psychological level of 0.6700. These levels serve as key hurdles that need to be overcome to solidify the upward momentum. Once these barriers are cleared, the pair may have a clearer path towards higher resistance levels, such as the previous weekly high of 0.6720.</p>

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<p>On the downside, the 100-HMA and the previous resistance line turned support offer immediate layers of defense against bearish pressure. Traders will closely monitor these levels for any signs of weakness or potential retracement. If the pair fails to hold above these support levels, it could open the door for a deeper pullback towards the lower boundary of the trend channel.</p>

<p>The broader market sentiment and the evolving economic landscape will also influence the AUD/USD pair’s trajectory. Factors such as global risk appetite, commodity prices, and economic data releases can introduce volatility and impact the pair’s dynamics. Traders will analyze fundamental clues and market indicators to gauge the direction of the pair.</p>

<h2>Conclusion</h2>

<p>In conclusion, the AUD/USD pair faces a critical juncture as it navigates resistance levels, trend channels, and the upcoming RBA Interest Rate Decision. The market’s reaction to these factors will determine whether the pair’s bullish momentum can be sustained or if a retracement is in order. Traders will closely monitor price levels, technical patterns, and fundamental developments to seize potential opportunities and manage risks effectively.</p>

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