FX.co ★ _____ | AUD/USD

AUD/USD Technical Outlook: Bullish Breakout Above 0.7130 Opens Path Toward 0.7180 AUD/USD is trading around 0.71706 on the 1-hour chart after a powerful bullish expansion from the 0.7100–0.7110 region. The pair has developed a clear sequence of higher highs and higher lows, with buyers recently breaking through the 0.7130 area and accelerating toward the 0.7180 level. The immediate technical bias is therefore bullish, although price is now trading close to the visible upper extreme and may require a pullback before another sustained advance. The broader structure shows buyers progressively taking control. After finding demand around 0.7040–0.7050, AUD/USD established higher lows and pushed through the 0.7080–0.7090 region. A later correction toward approximately 0.7065–0.7070 was absorbed by buyers, followed by another strong advance. The market then consolidated around 0.7100–0.7130 before the latest upside breakout. The most significant development is the break above the marked resistance and liquidity area around 0.7120–0.7130. Price initially reacted around this zone several times, including the area marked as 2 Top Liq, but eventually broke higher with strong bullish candles. The latest move above 0.7160 confirms that the breakout has developed into meaningful momentum rather than remaining a marginal resistance breach. The chart also shows a marked FVG around the 0.7120–0.7130 region and another nearby imbalance/support area around 0.7100–0.7110. These zones are important if price retraces. A controlled pullback into the recently broken structure, followed by bullish rejection, would provide stronger confirmation than chasing price at 0.71706 after such an extended move. The primary bullish scenario is continuation above the breakout structure. If price holds above approximately 0.7130 and buyers successfully defend a retest of that region, another push toward the current high around 0.7180 becomes plausible. A sustained break above 0.7180 would confirm fresh upside expansion, although the screenshot does not provide a sufficiently developed resistance structure above that level to justify an exact higher target. The alternative scenario is a failed breakout. If AUD/USD loses 0.7130 and cannot reclaim it, the recent momentum could begin to unwind toward the marked FVG and support around 0.7100–0.7110. A deeper move below that area would weaken the immediate bullish structure and bring the previous 0.7065–0.7080 support region back into focus. From a risk/reward perspective, buying directly near 0.7170 is less attractive because price has already made a substantial move from the breakout zone and is approaching the visible 0.7180 high. A more disciplined bullish setup would be a pullback toward 0.7130 followed by clear buying confirmation. Alternatively, traders could wait for a confirmed break above 0.7180 and subsequent retest rather than entering during the initial expansion. Overall, AUD/USD remains strongly bullish on the 1-hour chart, supported by higher highs, higher lows, and a decisive breakout from the 0.7120–0.7130 structure. The key level to monitor is 0.7130. Holding above it keeps the bullish continuation thesis intact, while sustained acceptance back below the breakout zone would signal that the latest upside expansion is losing momentum.