AUD/USD Technical Outlook: Testing Key Support Within a Broader Bullish Trend The AUD/USD currency pair on the 4-hour chart displays a well-established bullish structure over recent weeks, characterized by consistent higher highs and higher lows. After reaching a peak near the 0.7240 area, price action has entered a corrective phase, bringing the pair down toward the immediate support zone around 0.7195. This current price region around 0.7195 is critical because it previously acted as a resistance level before being broken to the upside. Technical behavior suggests that this level could now serve as dynamic support. The price is hovering right above this threshold, reflecting a temporary pause in bullish momentum as market participants gauge the strength of the retracement.
Looking at the moving averages, both indicators are sloping upwards below the current price action, confirming that the overall medium-term trend remains positive. The faster moving average is positioned closer to the spot price, acting as an additional layer of potential dynamic support near the current levels, while the slower moving average tracks further below, reinforcing the primary upward direction. If buyers defend the 0.7195 region successfully, a bullish rebound could target a retest of the recent high around 0.7240. A clear breakout above that peak would pave the way for further gains toward the 0.7254 resistance level. Conversely, if the price breaks below 0.7195 with strong momentum, it could trigger a deeper correction toward the next major support zone around 0.7140, where the lower moving average currently resides. In conclusion, while the pair is undergoing a short-term pullback, the dominant trend remains bullish. Traders should closely monitor how the price responds to the 0.7195 level. Confirmation of strong buying pressure around this mark could offer favorable risk-to-reward opportunities aligned with the prevailing uptrend.
