Buy on Breakout or Sell on Rejection Strategy at Resistance Area 0.6980 The AUDUSD chart on the H1 timeframe shows that the price is in a recovery phase after experiencing considerable selling pressure on October 14–15. The last price was seen around 0.6977, with the candles beginning to test the 0.6980 resistance area. This condition indicates an increase in short-term bullish momentum, but it is not yet sufficient to confirm that a stronger uptrend has formed. Therefore, a more rational trading strategy is to wait for confirmation of price movement before taking a position.
Market condition analysis Based on the candlestick structure, AUDUSD previously rose to near the 0.7010 area, then reversed sharply down to the 0.6900 area. After that decline, the price formed a gradual recovery phase back to around 0.6977. This pattern shows that buyers are starting to regain control in the short term, although seller pressure still needs to be considered. The indicator line colored blue appears around 0.6966 and is relatively flat. Price moving above that line gives a positive indication for buyers. Meanwhile, the red line is around the 0.6945–0.6980 area, depending on the part of the chart observed, and shows a change of direction after the previous decline. Because the indicator’s exact type and period are not known, its interpretation should be used as a visual guide rather than as a standalone trading signal. The Bollinger Bands show widening during the sharp decline, then begin to adjust as the price recovers. The candles' position approaching the upper band indicates increasing buying momentum, but also opens the possibility of a correction if the price fails to break the resistance. Important support and resistance areas Primary resistance: 0.6980–0.6985. This area is the nearest barrier to price increases. A strong H1 candle close above it could open opportunities for further gains. Next resistance: 0.6990–0.6996. This area could be a profit target if the breakout is confirmed and bullish momentum continues.
