AUDUSD Analysis: Conflicting Signals Emerge at Key Technical Juncture

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the AUDUSD for August 1, 2025.

Technical Analysis of AUDUSD

AUDUSD Daily Chart Insights

• Stochastic Oscillator: The price has fallen back to test the key moving averages, which are now acting as dynamic support. The Stochastic oscillator is in oversold territory, suggesting the recent downward momentum might be exhausted, and a bounce or stabilization could be imminent. The medium-term bullish structure remains intact as long as key support holds.
• Key support area: A definitive daily closure beneath the current support area and the prior low of 0.6420 would represent a major bearish shift. This break would invalidate the existing bullish framework and signal a possible trend change, bringing the primary support level at 0.6300 into view as the subsequent probable objective.

AUDUSD 2-hour Chart Analysis

• Bearish Phase: The moving averages have shifted into a bearish configuration (forming a “death cross”), with all three trending downward, validating the force and persistence of the ongoing decline. The asset is establishing a distinct pattern of successive declining peaks and troughs.
• Breakout scenarios: A prolonged breach and H2 settlement beneath the nearest support at 0.6425 would confirm the bearish momentum’s persistence. Such a move would pave the way for a decline toward the 0.6400 psychological threshold and possibly beyond. Given the oversold Stochastic reading, a corrective bounce is possible. A move beyond 0.6470 might trigger a recovery toward the main resistance area at 0.6510 – 0.6525.

AUDUSD Pivot Indicator

• Recently, the price has entered a tight consolidation phase near its lows, forming a potential base around the 0.6425 level. However, every attempt to rally has been shallow and met with resistance, particularly from the short-term (purple) moving average.
• Bearish Breakdown: The higher probability scenario aligns with the prevailing trend. A sustained break and close below the key support level of 0.6420 would signal the end of the current consolidation and the continuation of the downtrend. Such a development would likely trigger a move towards the 0.6400 psychological level.
• Bullish Breakout: A break above the immediate resistance at 0.6440 would be the first sign of bullish pressure, but the move would likely be limited. A more meaningful bullish signal would be a decisive break and hold above the primary resistance at 0.6475. Such a development would neutralize the immediate bearish pressure and could open the door for a larger correction towards the major resistance at 0.6500. However, until that level is breached, traders will likely view any rally as a selling opportunity.

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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.