The AUD/USD currency pair edged lower during the North American session on Friday, trading around 0.7137 and down 0.17% on the day. The pair remains stuck between key technical levels, with the 20-day Simple Moving Average (SMA) at 0.7187 and the 50-day SMA at 0.7095. The Relative Strength Index (RSI) has turned bearish, falling below the 50-neutral level, indicating that sellers are gaining momentum. If AUD/USD falls below the April 29 swing low at 0.7101, it could test the 4-week low at 0.7079 reached on May 19. Further downside could see support at the 100-day SMA at 0.7024 and then at 0.7000. On the upside, a break above the 20-day SMA would expose the 0.7200 level, with the year-to-date peak at 0.7264 as the next resistance. This week, the Australian Dollar was the strongest against the Canadian Dollar, but lost ground against the US Dollar, down 0.28% [1].
Silver (XAG/USD) also remains range-bound, trading near $76.00 and likely to close the week flat. The market is characterized by weak momentum, with both the RSI hovering just under the neutral 50 mark and the MACD in negative territory. This technical setup suggests that downside pressure persists, even as volatility has compressed. The 20-day Bollinger Simple Moving Average at $77.54 acts as initial resistance, and a daily close above this level would be needed to ease immediate selling pressure. The upper Bollinger band at $86.92 is a more distant bullish target, while the lower Bollinger band at $68.17 offers the next notable support should bearish momentum resume [2].
Geopolitical uncertainty continues to weigh on silver, as traders remain cautious amid ongoing US-Iran negotiations. Iran’s Foreign Ministry spokesperson stated that an agreement is not close and that details related to the nuclear issue are not being discussed at this stage. Sources indicated that negotiations have reached an understanding on broad lines, but major differences remain, particularly regarding Iran’s nuclear ambitions, which is a key demand from Washington. These developments have kept traders skeptical about the prospects for a final deal [2].
Following these headlines, the US Dollar eased from intraday highs, but XAG/USD struggled to attract meaningful buying interest as hawkish Federal Reserve expectations continue to limit the upside. Inflation concerns linked to elevated oil prices have prompted traders to increasingly price in the possibility of a Fed rate hike by the end of the year, with the latest University of Michigan inflation expectations data reinforcing this view [2].
CONCLUSION
Both AUD/USD and XAG/USD are trading within tight ranges, pressured by bearish technical signals and ongoing macroeconomic and geopolitical uncertainties. The lack of decisive movement in either asset reflects cautious market sentiment, with traders awaiting clearer direction from upcoming economic data and geopolitical developments.