The AUDUSD currency pair has seen some corrective price action recently, following a period of upward movement. Last week, the pair found a solid foundation just above its 100-day moving average and the 50% Fibonacci retracement level around 0.7070. This support zone proved crucial, enabling buyers to initiate a push higher.
The initial advance saw the AUDUSD revisit the August 17 peak near 0.7129 before entering a consolidation phase. A subsequent surge was bolstered by the ascending 100-hour moving average and benefited from a significant rise in commodity prices, particularly gold. This momentum propelled the pair to new weekly highs, ultimately reaching 0.7180, though it paused just shy of the next notable resistance area between 0.71936 and 0.7200.
Today's trading has featured a more corrective tone, with the AUDUSD declining during a session marked by fluctuating prices. However, the relatively narrow trading range, approximately 23 pips, indicates that sellers have not yet established a strong directional control. This context is vital for retail forex and CFD traders, as it suggests potential for continued volatility within a defined range, making careful risk management important for short-term positions.
Gold's Performance Amidst AUDUSD Correction
Interestingly, the AUDUSD's current decline occurs even as gold continues to build on its robust gains from the previous week. Gold has advanced further, adding approximately $70 or 1.51% to reach $4,672, after touching an intraday high of $4,680.92. This places gold at its highest valuation since mid-May, with its next significant upside target identified at the 50% retracement of its decline from the 2026 peak, positioned at $4,768.
From a technical standpoint, the AUDUSD maintains its bullish inclination. Key support levels will be critical to observe for further directional cues.
📰 Based on reporting from: ForexLive →