FX.co ★ glow_with_mouchi | AUD/USD

AUD/USD daily chart, my current view is clearly bullish, although I believe the pair is approaching an area where some temporary hesitation or profit-taking could appear. Price is trading around 0.7154 after a strong recovery from the June low near 0.6860. What stands out to me is not only the size of the recovery, but also the consistency of the higher lows and higher highs that have developed since the end of June From my perspective, the most important technical development is the change in market structure. During June, AUD/USD was under considerable selling pressure and eventually found support around the 0.6860–0.6870 region. Since then, buyers have gradually taken control. The pair first stabilized, then created a sequence of higher lows, and eventually started pushing through previous resistance zones. This tells me that bearish momentum has weakened considerably and that buyers currently have the stronger hand. The latest candles are particularly interesting because price has moved toward 0.7160–0.7180 while maintaining strong momentum. The immediate resistance I am watching is around 0.7175–0.7200. A convincing daily close above this zone would, in my opinion, confirm another bullish continuation phase and open the door toward 0.7230 and potentially 0.7260–0.7270. The 0.7260 area is especially important because it represents a much stronger historical resistance zone However, I would not chase the price aggressively at the current level. The RSI(14) on my chart is around 66.6, which shows strong bullish momentum but also indicates that the pair is getting closer to overbought territory. This does not automatically mean that a reversal is coming. In a strong trend, RSI can remain elevated for an extended period. For me, the RSI simply means that the risk of a short-term pullback is increasing. The MACD is giving me another reason to remain constructive. The histogram has moved firmly into positive territory and continues to expand, while the MACD line remains above the signal line. In my interpretation, this confirms that upside momentum is still developing rather than fading On the downside, my first important support area is around 0.7120–0.7100. If price pulls back into this region and buyers defend it successfully, I would consider that a normal technical correction within the broader bullish structure. Below that, 0.7070–0.7050 becomes the next important area, followed by the psychological 0.7000 level. A daily close below 0.7000 would make me much more cautious and could indicate that the current bullish structure is losing strength.