FX.co ★ torp.paris | AUD/USD

Price Recovery Towards Resistance 0.6980

The AUD/USD chart on the H1 timeframe shows price action that is recovering after previously experiencing fairly strong selling pressure. The price had fallen from the 0.7010 area to around 0.6900, then moved up gradually to reach the 0.6978 area. This condition shows that buying pressure is beginning to increase, but the price still faces the challenge of breaking through the resistance area around 0.6980–0.6985. Therefore, traders should pay attention to confirmation of price movement before making a trading decision. From a trend perspective, the blue moving average indicator line is around 0.6967–0.6970 and is starting to flatten out. The last observed price is above that line, which indicates short-term momentum tends to be bullish. Meanwhile, the red moving average line is around 0.6942 and still shows a downward slope. This suggests that the price recovery has not yet fully reversed the previous trend bias. Thus, the current market condition can be viewed as a bullish recovery phase amid residual bearish pressure. The Stochastic (5,3,3) indicator shows values around 78.69 and 80.33. Those figures indicate the price momentum has approached or entered the overbought zone. This situation does not automatically mean the price must fall, but it increases the likelihood of a correction if buying pressure begins to weaken. Traders should watch whether both Stochastic lines cross down, especially when the price fails to break the resistance. Conversely, if the price manages to break the resistance with a strong bullish candle, the upward momentum could still continue. Trading Strategy Buy Scenario A buy opportunity can be considered if the price breaks the 0.6980–0.6985 resistance and the H1 candle closes strongly above that area. Traders can wait for a retest of the breakout area before opening a position to reduce the risk of a false breakout. The first profit target is around 0.6995, while the next target can be aimed at 0.7000–0.7010. A stop-loss can be placed below the retest area or the nearest swing low according to risk tolerance. Do not chase the price if the rise has already gone too far. Sell Scenario A sell opportunity can be considered if the price fails to break the 0.6980–0.6985 resistance and then forms a convincing bearish candle. Additional confirmation can be a Stochastic cross downward from the overbought zone. The first target area is around 0.6970, then 0.6955 if selling pressure strengthens. The stop-loss should preferably be placed above the swing high or the tested resistance. Avoid opening a sell just because the Stochastic is above 80 without confirmation of a price reversal. Risk Management Use risk of about 1% of capital per trade and ensure the risk-to-reward ratio is ideally at least 1:2. Avoid opening positions excessively when market direction is unclear. Wait for the H1 candle to close, pay attention to volatility, and evaluate opportunities based on the latest price structure. Conclusion: AUD/USD is showing a bullish recovery, but the 0.6980–0.6985 area will determine the next direction. A confirmed breakout supports the buy scenario, while a strong rejection at resistance opens the possibility of a correction toward 0.6970 or lower. The best strategy is to wait for confirmation, not to guess the market direction. This analysis is technical based on the image and is not a guarantee of trading results.