FX.co ★ Slingshot | AUD/USD

AUDUSD – Technical Analysis Support and Resistance AUDUSD continues to maintain a bullish institutional order flow, with buyers remaining in control after the market established a strong bullish structure from the 0.69250 price level. The pair is currently trading around 0.70198, showing that bullish momentum is still intact despite minor intraday pullbacks. Recently, the market swept the internal sell-side liquidity, a common institutional move designed to trigger retail stop losses and collect liquidity before continuing in the prevailing direction. This liquidity hunt has strengthened the bullish outlook and confirms that smart money is still favoring higher prices. Following this liquidity sweep, AUDUSD has created an important support zone around 0.70070. This level is expected to act as a key decision point if price retraces during the upcoming trading sessions. Rather than chasing the market at current prices, waiting patiently for price to revisit this support provides a much more favorable risk-to-reward opportunity. However, it is essential to remember that price reaching the support level alone is not sufficient to initiate a buy position. A valid lower time frame confirmation—such as a bullish market structure shift, strong bullish engulfing candle, displacement, or liquidity sweep followed by an impulsive move—is required before considering any long entry. On the upside, the next significant objective for buyers is the buy-side liquidity resting near 0.70500. This liquidity pool represents an attractive target where institutions may seek to drive price before profit-taking occurs. Traders can consider booking partial profits at a minimum risk-to-reward ratio of 1:3, allowing them to secure gains while leaving a remaining position open in case the bullish trend extends further. Proper trade management remains critical because even within strong bullish trends, temporary pullbacks and consolidations are completely normal. As long as AUDUSD continues producing higher highs and higher lows while respecting institutional support zones, the overall bias remains bullish. A sustained break below 0.70070, especially if accompanied by bearish market structure on lower time frames, would weaken the immediate bullish outlook and may delay the continuation toward higher liquidity levels. Until such a scenario develops, buyers continue to hold the technical advantage.

EMA (Exponential Moving Average) The moving averages continue to support the bullish narrative. On the 1-hour timeframe, AUDUSD is trading comfortably above both the EMA 50 and EMA 100, indicating that short-term and medium-term momentum remain aligned in favor of buyers. In addition, a bullish crossover between these moving averages has already formed, which often signals strengthening upward momentum and increasing buying pressure. The significance of this setup becomes even greater because the identified support level at 0.70070 is closely aligned with these dynamic EMA support zones. When multiple technical factors converge at the same price area—including institutional support, moving averages, and previous liquidity zones—the probability of a successful bullish reaction generally improves. Nevertheless, traders should continue following disciplined trading principles. The moving averages should be treated as a confirmation tool rather than a standalone entry signal. The highest-probability setup remains a retracement into the support area followed by a clear bullish confirmation on the lower time frames. Avoid entering solely because price touches the EMA, as false reactions can occur during periods of increased market volatility. RSI (Relative Strength Index) The Relative Strength Index (RSI) is currently reading 59.22, reflecting healthy bullish momentum without indicating an overbought market. This suggests there is still sufficient room for buyers to push the pair toward the next liquidity objective before momentum becomes exhausted. If AUDUSD retraces toward the 0.70070 support level, traders should closely monitor RSI behavior. A double bottom formation around or slightly below the 50 RSI level would provide additional confirmation that bearish momentum is weakening and buyers are regaining control. Such confluence between RSI behavior, institutional support, and lower time frame price action would significantly strengthen the probability of a successful long setup. Conversely, if RSI breaks decisively below the 50 level and continues forming lower lows while price fails to defend the support zone, traders should remain patient and avoid forcing buy positions until fresh bullish confirmation develops. Conclusion The overall technical outlook for AUDUSD remains bullish, supported by institutional order flow, a successful internal sell-side liquidity sweep, bullish market structure, favorable EMA positioning, and positive RSI momentum. The 0.70070 support level remains the key area to monitor for potential buying opportunities. Traders should wait for clear lower time frame confirmation before entering any long position, as disciplined execution consistently provides better trading outcomes than anticipating market direction. The next major objective remains the buy-side liquidity near 0.70500, where partial profit-taking at a minimum 1:3 risk-to-reward ratio is recommended. As long as price continues respecting higher lows and maintains its position above the EMA 50 and EMA 100, the bullish trend remains valid. Patience, proper confirmation, and sound risk management continue to be the foundation of a high-probability AUDUSD trading strategy.