AUD/USD still trades within a narrow consolidation squeeze. That leaves it shy of the new 2025 high of 0.6563 for a second day in a row. The currency pair is still deeply bullish, owing to extremely positive technical indicators. Both positive market sentiment and positive climate policy at home and abroad help make the momentum stick.
At the moment, AUD/USD has very strong resistance at AUD/USD at the 0.6563 level, which has become a major psychological resistance point. If the duo overcome this hurdle, additional resistance is found at 0.6598, then at 0.6622. The next major resistance level is at 0.6700, a horizontal level that traders will be watching carefully for signs of a breakout.
On the negative side, AUD/USD has formed important resistances at 0.6540, 0.6550, 0.6596, and 0.6616. Collectively, these levels form a safety net for the couple. They indicate spots where purchasing demand might increase dramatically once the price experiences a pullback.
The daily chart for AUD/USD has a very bullish look to it. Its place above a large ascending daily Ichimoku cloud completes this bullish narrative. This technical formation implies very vigorous upward momentum, and that has been a key driver behind the pair’s present-day breakout. In addition, a huge bullish engulfing pattern has formed on the weekly chart, adding validation to the optimism seen around AUD/USD.
At this point in time, AUD/USD is on track to achieve its sixth straight monthly rise. This trend further underscores a formidable stretch of strength for the currency pair. The recent move above the critical Fibonacci barrier at 0.6549—representing 61.8% of the downtrend from September 2024 to April 2025—has sparked renewed interest among traders and investors alike.
Market participants are keeping a close watch on macroeconomic indicators and geopolitical developments that could influence the Australian dollar’s performance against the U.S. dollar. Analysts caution that the AUD/USD bullish path is likely to face headwinds. It would take a shift in market sentiment or some key economic numbers from Australia or the United States to lead to those difficulties.