AUD/USD – Technical Analysis – 4h

The chart shows a general bullish uptrend from mid-January to early February, with recent consolidation indicating a continuation of the bullish trend.

A Bullish Engulfing Pattern towards the end of January suggests strong buying interest and potential reversal from a short-term downtrend.

Doji Candles around the end of January and early February reflect market indecision, while a breakout above the 0.70500 level signals further bullish momentum.

The MACD line being above the Signal line indicates a bullish crossover, suggesting continued upward momentum.

Positive and increasing histogram bars reinforce the bullish momentum, which denotes increasing buying pressure.

No clear divergence is noted between MACD and the price action, reinforcing the current trend.

A noticeable increase in volume accompanies the recent price rise around February 5th, supporting the breakout.

Rising volume aligns with the price increase, indicating strong market interest and validation of the current trend.

No unusually high volume spikes suggest significant institutional activity, aside from the noted increases.

Key support is established around 0.70000, tested multiple times and holding firm.

The recent peak at approximately 0.71500 could act as a possible resistance, with a break above indicating potential further gains.

Monitoring these levels is crucial for traders aiming to navigate the market effectively.

Consider entering long positions on pullbacks near the 0.70500 support area, with stops below 0.70000. A breakout above 0.71500 with volume confirmation could present further buying opportunities.

Traders might think about liquidating positions if the price loses momentum and falls below key support at 0.70000.

Holding long positions could be beneficial as the uptrend remains intact, with the MACD showing bullish signals.