Australian Dollar extends recovery as USD slides toward multi-year lows

The Australian Dollar (AUD) is strengthening on Friday, with the pair moving near the 0.6280 zone during the American session. The bullish tone for the Aussie emerges as the US Dollar (USD) continues to weaken across the board, dragged by lower-than-expected economic data and growing investor concern over inflation and trade policy. While momentum is cautiously improving, the broader trend remains technically bearish, with resistance zones limiting additional upside for now.

Technical analysis

AUD/USD extends its recovery for a third straight session, approaching the upper range of its daily movement, with price action contained between 0.6180 and 0.6287. Despite today’s upward push, the overall technical structure remains fragile.

The Relative Strength Index (RSI) prints around 50, neutral but leaning bullish as it rises steadily. Meanwhile, the MACD still signals weakness, printing a fresh red bar, indicating sellers haven’t exited entirely. The Ultimate Oscillator and Stochastic readings remain neutral, suggesting the trend lacks strong conviction.

From a trend-following standpoint, all major moving averages continue to point downward. The 20-day, 100-day, and 200-day Simple Moving Averages, along with the 30-day EMA, all confirm lingering bearish pressure. Key resistance levels are noted at 0.6244, 0.6261, and 0.6262, while support is seen at 0.6236, 0.6215, and 0.6180. A break above the 0.6260 area could open room for a stronger bullish correction, though the technical bias remains cautious for now.