Australian Dollar vs US Dollar price prediction: New highs signal extended rally? AUD/USD gains to 0.7180

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Australian dollar gains 0.86% to $0.7180

Highlights

AUD/USD surged to new yearly highs after the IEA urged the release of 400 million barrels from oil reserves, boosting risk sentiment.
A larger-than-expected US crude inventory build of 3.824 million barrels further supported AUD/USD strength amid global energy market volatility.
Technical signals confirm strong bullish momentum, with AUD/USD expected to trade between $0.7150 and $0.7275 over the next five days.

New yearly high as energy policy and supply data boost flows

The Australian Dollar has climbed to new yearly highs against the US Dollar after the International Energy Agency officially recommended the release of 400 million barrels from strategic oil reserves. This action follows global energy market reactions linked to the Iranian conflict. Additionally, the EIA weekly report noted a larger-than-expected build in US crude oil inventories, with an increase of 3.824 million barrels compared to the anticipated 1.055 million, further supporting momentum for the currency pair.

Bullish momentum intact as mixed overbought signals emerge

Momentum indicators underscore persistent bullish sentiment for AUD/USD, with both ADX and MACD signaling a strong directional move upward. RSI and CCI show mild overbought conditions, while Stoch RSI is neutral, generating mixed short-term signals. Bull/Bear Power (BBP) indicates robust buyer dominance intraday. The price opened with a significant gap up above the previous close, trades near today’s high within the $0.7145 – $0.7183 band, and demonstrates moderate volatility. The Ichimoku Kijun at $0.7056 provides immediate support. Overall, momentum signals reinforce the prevailing upside, though some oscillators suggest rising caution.

Consolidation expected as breakout and reversal levels approach

For the next five trading days, AUD/USD is expected to fluctuate within a $0.7150 to $0.7275 volatility band relative to current levels. The probability of continued price strength is very high (more than 80%), while downside risk remains limited. Baseline expectations are for consolidation between established support and resistance. A breakout above $0.7275 could fuel additional gains, while sustained trading below $0.7150 would signal a possible reversal and renewed downward pressure.

Viktoras Karapetjanc, expert at Traders Union, sees strong macro and sentiment drivers lifting AUD/USD to new highs. He believes coordinated global actions on oil reserves and larger US inventories are fueling optimism for the Australian Dollar. Momentum is clearly to the upside, but mild overbought signals warrant some short-term caution. The analyst expects price to stay constructive within the $0.7150 — $0.7275 range. "Momentum and fundamentals suggest the trend is intact, so I remain positive as long as AUD/USD holds above $0.7150."

Last time, analysts noted that AUD/USD was maintaining strong bullish momentum above its major moving averages, with positive signals from MACD and firm ADX supporting an established uptrend. Despite some oscillators highlighting overbought conditions, the pair remains well-supported near the Kijun line with resistance approaching the $0.7200 level, as buyers continue to show resilience.

Source of Data: AUD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.