FX.co ★ Melsiafy | AUD/USD

After closely observing AUD/USD during the recent market structure on the 4-hour timeframe, price action clearly shows that the pair is reacting to a well-defined demand zone that has previously acted as both support and accumulation territory. This zone, highlighted on the chart, has played a crucial role in maintaining bullish structure over the past sessions. Initially, the pair experienced a strong impulsive move to the upside, confirming the presence of institutional buying interest from the demand area. Following this impulse, price entered a corrective phase, forming a healthy pullback rather than a sharp reversal. This behavior suggests that the bullish momentum has not been exhausted and that buyers are still defending key levels. From a structural perspective, the market remains in a higher high–higher low formation on the H4 timeframe. Even though price is currently consolidating near the upper boundary of the demand zone, there is no clear bearish breakdown yet. Instead, price appears to be respecting the zone and attempting to build a base for the next potential leg higher. The highlighted blue zone represents a strong accumulation area where liquidity was absorbed earlier, leading to the previous bullish breakout. The current retest of this area increases the probability of a bullish continuation, especially if bullish confirmation candles appear near the lower boundary of the zone. Momentum indicators also support this view. The RSI remains above the neutral 50 level, indicating that bullish momentum is still dominant despite the recent pullback. There are no signs of bearish divergence at the moment, which further strengthens the bullish scenario. Meanwhile, MACD shows signs of momentum stabilization, suggesting that selling pressure is weakening rather than accelerating. From a trading perspective, the optimal scenario would be a clear bullish reaction from the demand zone, followed by a strong close above the local structure resistance. Such a move would confirm buyers’ control and open the door for a continuation toward the highlighted upside target area (green zone). This target aligns with previous highs and an unmitigated supply area, making it a logical take-profit zone. On the other hand, risk management remains critical. A confirmed H4 close below the demand zone would invalidate the bullish setup and shift market bias toward a deeper corrective move. In that case, sellers could gain control, pushing price toward lower support levels. Therefore, maintaining a well-defined stop-loss below the demand zone is essential to protect capital. In conclusion, AUD/USD is currently at a technically significant area. As long as price holds above the demand zone and respects the bullish structure, the probability favors a continuation to the upside. Traders should remain patient and wait for confirmation rather than chasing price, as the market is offering a high-quality setup with a clear risk-to-reward profile.