The AUDUSD pair is up 0.50% on the day, supported by stronger commodities and a softer U.S. dollar. Gold is higher by $54 (1.52%), while silver has gained 0.86%, both lending tailwinds to the Aussie.
From a technical perspective, the AUDUSD briefly broke above a swing area between 0.65889 and 0.65946 earlier in the session, reaching a high of 0.65981. However, momentum stalled, and the pair has since slipped back below the lower edge of that zone at 0.65889. Notably, Friday’s rally also stalled at this same swing area, where sellers stepped in and capped the upside. The repeated failure to sustain a break higher leaves buyers disappointed and provides sellers with a fresh opportunity to lean against resistance, betting on a turn lower.
On the downside, the first support level to watch is the August 14 swing high at 0.6567. A move below that would target the September 1 swing high at 0.6559. Breaking both should invite additional downside momentum as failed buyers flip to the sell side.
If the buyers are able to regroup and extend back above the swing area high at 0.65946, we should see additional momentum with the high price from July at 0.66247 as the next major target. That level represents the high for the year and the highest level going back to November 2024.
