FX.co ★ torp.paris | AUD/USD

Consolidation in Area 0.7120–0.7130

Using the AUD/USD H1 chart, the price is currently around 0.7123–0.7126 and appears to be entering a consolidation phase after a sharp decline on September 16, followed by a gradual recovery. The latest price structure shows that selling pressure is beginning to ease, but upward momentum is not yet strong enough to produce a clear breakout. The red moving average line appears to be flattening and moving closer to price, while the price remains within the Bollinger Bands. This condition more reflects a market that is searching for its next direction. The 0.7120–0.7123 area can be noted as short-term support. If the H1 candle can hold above that area and form a bullish rejection pattern, a strategy to consider is waiting for confirmation for a buy position. Initial targets can be set around 0.7127–0.7130, then the 0.7135–0.7137 area if upward momentum continues. A valid break above 0.7137 can be a signal that the short-term bullish structure is starting to strengthen, but it is better to wait for the H1 candle to fully close above that level to reduce the risk of a false breakout. Conversely, if price fails to hold 0.7120 and the H1 candle closes with clear bearish pressure, a bearish scenario becomes more relevant to watch. The next supports are around 0.7117, then 0.7107–0.7108. A decline toward these areas should be confirmed by candles such as rejection, engulfing, or breakout-retest. Stop-losses should be placed outside the last swing structure, not simply based on a fixed distance; such a move would indicate that sellers have regained control after the previous recovery phase. For entry strategy, a more conservative approach is not to chase price in the middle of the range. Wait for price to approach support or resistance, then look for confirmation candles such as rejection, engulfing, or breakout-retest. Stop-losses should be placed outside the last swing structure, not merely based on a fixed distance. Position sizing also needs to be adjusted so that the risk per trade remains controlled. Technically, this chart does not yet give a very strong direction because price is still moving sideways around 0.7120–0.7130. Therefore, the 0.7120 level as support and 0.7130–0.7137 as resistance can be used as the main boundaries to determine scenarios. This analysis is based only on the technical structure shown in the image and is not a guarantee of price movement; market conditions, Australian/U.S. economic news, and volatility during the trading session should still be taken into account.