AUD/USD Technical Outlook I’ve been tracking the AUD/USD 4-hour chart quite closely today, and the price action is setting up a really interesting inflection point around the current 0.7127 level. After a pretty steady bullish run that pushed the pair up toward the 0.7250 mark, we’ve seen a noticeable pullback recently. Price has dropped back below the faster moving average and is now testing a crucial horizontal level alongside the slower moving average, which is acting as a dynamic support band. It really feels like the market is decision-making mode here to see if buyers will step back in or if a deeper correction is on the table. Looking at the immediate support zone, the area right around 0.7095 to 0.7120 is holding the key for me. We saw a recent long lower shadow dip down toward 0.7085 before pulling right back up, showing that buyers are still willing to defend this zone. In my view, as long as price holds above this floor, there’s still a decent chance for the broader uptrend to resume. However, if we get a firm close below 0.7095, I’m expecting the bears to take control and drive the pair further down toward the next major support handle near 0.6975. On the upside, resistance is pretty clearly marked around the 0.7215 to 0.7255 region, where the recent rally topped out. I think for the bulls to regain full control, we need to see a solid push back above the short-term moving average followed by a clear break past that 0.7255 peak. If the pair manages to clear that hurdle, it would open up plenty of room for an extension toward the 0.7300 psychological level. Until then, any upside momentum might face friction around 0.7175. Checking the indicators, everything seems to confirm this cautious, balanced outlook. The RSI is floating right around the middle 48 mark, which tells me the market isn't overbought or oversold at the moment, but rather taking a breath. Meanwhile, the Stochastic oscillator is hovering around the midpoint around 51 after turning up from lower levels, and MACD bars are flat near the zero line, signaling momentum is temporarily stalled. Overall, I prefer to wait for a clearer signal before committing to a position on AUD/USD today. I’m watching how price behaves around this 0.7120 support area over the next few 4-hour candles. If I see strong bullish rejection candles here, I’ll look for potential long entries targeting a bounce back up. On the flip side, a clean break below support will keep me on the sidelines or looking for short opportunities toward lower levels.
