AUD/USD Technical Breakout Potential

Thursday, 7 March 2024, 08:31

AUD/USD is showing signs of a potential technical breakout this week as buyers aim to push above key resistance levels. The confluence of moving averages coupled with bullish momentum suggests an upside bias, but sellers are still defending the resistance region around 0.6580-95. Market sentiment remains mixed, especially with upcoming US non-farm payrolls, which could determine the direction of AUD/USD.
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AUD/USD Technical Breakout Potential

Technical Breakout Forecast for AUD/USD

In the second half of February trading, AUD/USD saw a modest rebound from its lowest levels since November last year to around 0.6580-95. The rebound stalled amid a test of the 200-day moving average (blue line) at the time as well. That considering the daily closes failed to breach the key technical level. But this week, buyers are looking to make a play as seen above.

Key Resistance and Support Levels

  • The confluence of the 100 (red line) and 200-day moving averages is seen at 0.6560-63 currently.
  • Price has broken past that point as buyers bid the pair to 0.6590 now, shifting the bias to being more bullish.
  • Key resistance region of 0.6580-95 remains a challenge for a breakout.
  • A push above the key resistance region will bring into focus the 61.8 Fib retracement level at 0.6606 next.
  • Sellers will have to push price back below the confluence of the daily moving averages for downside potential.

Overall dollar sentiment is fairly mixed with European currencies and the Japanese yen showing varied performance against the dollar. The article also discusses the impact of upcoming US non-farm payrolls on the AUD/USD pair.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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