AUD\/USD traded near 0.7220 in Asian trading on Friday after easing from the prior day\u2019s losses. The daily chart shows the pair rising within an ascending channel.<\/p>\n
Price remains above the nine-day and 50-day Exponential Moving Averages, at 0.7195 and 0.7083. The 14-day Relative Strength Index is near 61, below overbought levels.<\/p>\n
Resistance sits at 0.7277, the May 6 peak and the highest level since June 2022. A break above 0.7277 could open a move towards the channel\u2019s upper boundary near 0.7430.<\/p>\n
Support is first seen at the nine-day EMA at 0.7195 and then the channel\u2019s lower boundary around 0.7170. Further falls could test the 50-day EMA at 0.7083.<\/p>\n
If the pair drops below 0.7083, it may move towards 0.6833. That level is the three-month low recorded on March 30.<\/p>\n
The technical analysis was produced with assistance from an AI tool.<\/p>\n
Looking back to this time in 2025, we saw the AUD\/USD pair showing a clear bullish bias within an ascending channel. The price was trading around 0.7220, holding firmly above key moving averages and suggesting a move toward the 0.7277 high seen in June 2022. This technical structure set the stage for further gains that played out over the subsequent months.<\/p>\n
Today, on May 8, 2026, that upward momentum has evolved, with the pair now testing the 0.7550 region. This strength is supported by fundamental factors, including a recent hawkish shift from the Reserve Bank of Australia and a rebound in iron ore prices, which are up 8% in the last quarter. This backdrop suggests the bullish trend we identified last year remains intact, albeit at higher levels.<\/p>\n
For those anticipating further upside, we believe buying call options with strike prices around 0.7600 for June expiry could be a prudent strategy. This allows traders to participate in a potential rally towards the 0.7700 level. The defined risk of an options contract is attractive given the recent increase in market volatility.<\/p>\n
Conversely, we must also consider downside risks, especially with US inflation data due next week. The key support level we identified last year around the 50-day EMA would now correspond to the 0.7420 area. Traders with existing long positions could consider purchasing protective puts below this level to hedge against an unexpectedly strong dollar.<\/p>\n
Implied volatility has risen ahead of the upcoming economic data, indicating the market is pricing in larger price swings. The latest Australian jobs report showed unemployment holding at a historically low 3.8%, so any deviation from this trend could trigger a significant move. This environment makes strategies sensitive to volatility, such as strangles, worth considering for those who expect a breakout but are unsure of the direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" AUD\/USD steadied near 0.7220; trend remains bullish above key EMAs, with resistance at 0.7277.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-49835","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/49835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=49835"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/49835\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=49835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=49835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=49835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}