The AUD/USD currency pair eased from the 0.6960 area, marking a two-week high during the Asian session on Tuesday, and appears to have ended a three-day winning streak. Despite the intraday pullback, bearish momentum remains limited, suggesting caution before confirming that the recent recovery from a three-month low has concluded [1].
Technically, the pair has struggled to break above the 38.2% Fibonacci retracement level of the November 2025-May 2026 rally, with mixed momentum oscillators indicating a consolidative bias. The MACD has turned slightly positive, hinting at a modest improvement in upside momentum, while the RSI near 42 signals only mild directional pressure. Renewed tensions in the Strait of Hormuz have supported the US Dollar, adding to the cautious outlook for aggressive bullish traders [1].
Initial support for AUD/USD is seen at the 50% retracement level at 0.6853, with deeper structural support at the 61.8% Fibo near 0.6752. Further downside targets include 0.6608 and 0.6425 if selling intensifies. On the upside, a sustained break above the 38.2% Fibo at 0.6954 could open the path toward the 23.6% retracement barrier at 0.7079, with the cycle high at 0.7282 as a more distant bullish objective [1].
Over the past seven days, the Australian Dollar has shown relative strength against the Canadian Dollar, as indicated by the percentage change table, but overall, the currency's performance against other majors has been mixed, reflecting a consolidative market environment [1].
CONCLUSION
AUD/USD has pulled back from recent highs, with technical resistance at the 38.2% Fibonacci level limiting further gains. Market sentiment remains cautious, supported by mixed technical signals and external geopolitical factors. Traders are advised to watch for a sustained move above key resistance levels to confirm any extension of the recovery.