AUD/USD Forecast: Rising 20-day EMA Supports Short-term Bullish Bias

AUD/USD is under slight pressure during the European session on Wednesday, currently trading at 0.70739, down about 0.17% on the day. Despite the pair pulling back from earlier highs, technically, as spot price continues to hold above the key 20-day exponential moving average (EMA), the short-term bias remains slightly bullish.

**20-day EMA Provides Short-term Support**

Technical charts show the 20-day EMA currently sits near 0.6969, offering dynamic support for the pair. As long as AUD/USD does not decisively break below this moving average, the recent rebound structure remains intact. Market data indicates the pair had earlier approached the 0.7160 area before correcting, but the pullback was limited above the moving average system, suggesting decent buying interest at lower levels.

**Multi-timeframe Moving Averages Offer Support**

In addition to the 20-day EMA, the shorter-term 9-day EMA and the 50-day EMA also maintain a bullish alignment, further reinforcing the current constructive technical backdrop. According to analyst observations, this combination of moving averages has helped AUD/USD stabilize around 0.7050, preserving the potential for a test of recent highs. However, if the pair loses the 20-day EMA going forward, the short-term trend could turn neutral or even bearish.

**US Dollar Rebound Caps Upside**

The upside momentum of AUD/USD is simultaneously constrained by a rebound in the US dollar index. Reports show the dollar index has climbed to a two-week high near 99.20, exerting broad pressure on non-USD currencies. Against this backdrop, while AUD/USD maintains a bullish tilt, further gains would require additional catalysts, with markets closely watching upcoming US economic data for direction on the dollar.