AUD/USD looks for a breakout above 0.6500 in the middle of a weak US dollar

• The Australian dollar reaches a new weekly maximum about 0.6480, rising more than 1.20% in the day.
• The psychological level of 0.6500 and the line of descending trend continue to act as key resistance.
• AUD/USD is firmly maintained above the 21 -day EMA at 0.6414, reinforcing the short -term bullish bias.

The Australian dollar (AUD) advances against the US dollar (USD), reaching a new weekly maximum about 0.6480 on Friday, rising more than 1.20% in the day. The Aud/USD is gaining ground amid the generalized weakness of the US dollar and a feeling of resilient risk, but despite the bullish tone, the pair is still trapped within a narrow range. The rise faces a strong resistance of a line of descending trend and the psychological barrier of 0.6500, a level that has repeatedly limited the profits this month.

At the same time, Aussie is obtaining additional force of encouraging signals in the global commercial front. The China Ministry of Foreign Affairs confirmed that Beijing and Washington have agreed to maintain open communication channels after a high -level diplomatic exchange.

From a technical point of view, the price action in recent weeks has taken the form of a bullish flag, a technical graphic pattern that often indicates following a strong upward movement. This pattern occurs after the strong rebound from the April minimum near the psychological brand of 0.5900. The irregular price action in recent days suggests that the bulls are cautious before opening new positions.

Buyers have managed to keep the torque above the round figure of 0.6400, a previous resistance converted into support, which closely coincides with the exponential (EMA) mobile average of 21 days in 0.6414. The AUD/USD has consistently remained above this key support throughout May, indicating that buyers are still in control. The price has been adjusting within convergent tendency lines, and a break above the upper flag limit around the region of 0.6480–0.6500 could be the catalyst for a movement towards the level of 0.6550 not seen since November 2024.

Strengthening the case for more profits, Momentum indicators add more weight to upward configuration. The relative force index (RSI) remains firm above the neutral level of 50, currently in 57.3, suggesting that the bullish momentum is accumulating but still has space to reach the territory of overcompra. Meanwhile, the convergence/divergence indicator of mobile socks (MacD) also leans in favor of more profits. The MACD line has crossed above the signal line, and the histogram is positive, both classic increasing ascending pressure signs.

In general, while the pair is supported above the 21 -day EMA and the lower trend line of the flag, the technical perspective remains constructive. A clear rupture above the psychological barrier of 0.6500 would probably trigger new purchases and prepare the stage for a rebound towards 0.6550 and beyond. Down, a fall below 0.6400 would pause the upward stage and expose a deeper setback to the torque. However, for now, the price structure, the trend bias and the momentum all point to the possible rupture of the flag for more increases in the next few days.