FX.co ★ AUD/USD

AUD/USD Technical Analysis: H4 Chart Evaluation and Potential Trajectory The AUD/USD currency pair on the H4 timeframe currently presents an intriguing setup for medium-term traders. After reaching a peak near the 0.7240 region, the market experienced a sharp corrective decline, breaking below the faster dynamic moving average. This downside momentum brought price action toward the primary horizontal support zone around 0.7115–0.7120, which coincides closely with the longer-term moving average. At present, price is trading near 0.7123, fluctuating right around this critical juncture. The recent candlestick patterns show long lower wicks near the 0.7080 mark, signaling substantial buying interest and rejection of lower prices. However, the subsequent rebound remains capped below the upper moving average, indicating a period of consolidation before a decisive breakout occurs. From a technical point of view, two potential scenarios emerge:

If buyers manage to defend the current support zone at 0.7115 and push price cleanly above 0.7150, we could witness a continuation of the broader bullish trend. A successful recovery above this dynamic resistance would open the path toward testing previous swing highs near 0.7200 and potentially 0.7250. Conversely, a sustained H4 candle closure beneath the 0.7080 support level would invalidate the immediate bullish outlook. Such a breakdown could trigger further selling pressure, driving the pair toward deeper support handles near 0.7045 or even 0.7010 in the coming sessions. Traders should monitor price movement near the 0.7120 region closely. Waiting for confirmation around these structural levels before taking positions will help manage risk effectively. Staying cautious with appropriate position sizing remains essential during this period of key decision-making for the pair.