FX.co ★ AUD/USD

AUD/USD Daily Chart Technical Analysis The AUD/USD daily chart is currently showing a strong bearish corrective structure after price failed to maintain momentum near the recent swing high around 0.7260. I can see that the market previously created a Higher High (HH) and confirmed a Break of Structure (BOS), which initially indicated bullish continuation. However, after reaching the top, sellers stepped in aggressively and pushed price lower. The current movement suggests that short-term bearish pressure is dominating while price retraces into a major demand region. Descending Channel Formation One of the main tools visible on the chart is a descending channel pattern, where price is respecting both upper and lower trendline boundaries. I notice that the market has completed a clear five-wave bearish structure (1)-(5) inside this channel, showing organized selling pressure. The final wave has now approached the lower boundary, which often becomes an area where temporary exhaustion can appear. This tells me that sellers may be losing momentum near the channel support. Order Block and Liquidity Zone A key area marked on the chart is the Order Block (OB) combined with a Liquidity Zone around 0.6830–0.6860. I see price reacting directly inside this zone, which indicates institutions may begin accumulating buy positions. This area is technically important because previous buying interest entered here, making it a strong support region. Future Price Projection My current outlook suggests that if buyers defend this liquidity zone successfully, I expect AUD/USD to reverse upward toward 0.7194 resistance and potentially continue higher toward 0.7300. I am watching for bullish confirmation because this support reaction could become the beginning of a larger trend reversal.