Technical Analysis 21 October 2026 AUD/USD H-1 The AUD/USD currency pair is displaying a strong bullish recovery on the 1-hour chart, currently trading around 0.70129. After reaching a local low near the 0.69005 support region around October 15, buyers stepped in consistently, forming a steady higher-high and higher-low structure. Price action has breached key psychological handle 0.7000 and is testing immediate resistance near 0.7015 – 0.7043. Technical Analysis & Key Levels * Moving Average (EMA): Price remains consistently above its short-term exponential moving average, showing strong dynamic support along the uptrend. * Relative Strength Index (RSI 14): Currently sitting at 61.93, reflecting healthy bullish momentum without entering extreme overbought territory (>70). * MACD (12,26,9) & Bears Power: MACD histogram bars remain above the zero signal line, signaling continued buyer control. The Bears Power indicator (0.000383) confirms weak selling pressure during recent minor pullbacks. Key Support & Resistance Levels * Resistance 2 (R2): 0.70430 (Upper resistance level) * Resistance 1 (R1): 0.70150 – 0.70200 (Immediate horizontal resistance block) * Support 1 (S1): 0.69860 (Immediate support & previous consolidation zone) * Support 2 (S2): 0.69575 (Secondary structural support line) * Major Base Support: 0.69005 (Recent swing low base) Trading Hints & Strategy Scenarios Scenario A: Bullish Continuation (Breakout Buy) * Entry: Buy stop above 0.70180 (upon a clean H1 candle close above key resistance). * Take Profit (TP): 0.70430 * Stop Loss (SL): 0.69850 (below immediate structure level). * Rationale: A sustained close above 0.70150 confirms buyers have absorbed overhead liquidity, clearing the path toward the 0.70430 target. Scenario B: Pullback / Dip-Buying Strategy * Entry: Limit buy orders around 0.69860 – 0.69900 (retest of the broken resistance-turned-support level). * Take Profit (TP): 0.70200 / 0.70400 * Stop Loss (SL): 0.69550 * Rationale: Buying on a healthy corrective pull toward the 0.69860 support region offers an optimal risk-to-reward ratio. Executive Summary The AUD/USD short-term structure on the 1-hour timeframe is decisively bullish. Following a bottoming formation near 0.69005, the pair has established a steady upward trend supported by positive momentum on the RSI (61.93) and MACD indicators. As long as price trades above the 0.69860 support level, the path of least resistance remains to the upside toward 0.70430. Traders should look for confirmation via a clean breakout above 0.70150 or a shallow pullback to key support before initiating new long positions. Maintain strict risk management given potential volatility around resistance levels.
