The AUDUSD moved sharply lower on Thursday and Friday of last week after failing to extend above the prior week’s high at 0.7277. The high price for the week reached 0.7271 — just six pips shy of that key target level — before sellers took back control and pushed the pair sharply lower.
The decline extended to a low today at 0.7119, which came within roughly eight pips of an important swing area between 0.7100 and 0.7111. That support zone attracted buyers, helping the pair bounce modestly higher into the new trading day.
So what comes next?
Looking at the hourly chart, the technical focus now shifts to a well-defined trading range. A prior ceiling between 0.71936 and 0.7200 has now turned into resistance once again, while the 0.7100–0.7111 area remains key support. Together, those levels define the broader 100-pip battleground for buyers and sellers.
The current price is trading near the middle of that range around 0.7153, reflecting the ongoing tug-of-war between bullish and bearish forces.
In the short term, traders will be watching a closer support target near 0.71344 — the swing low from May 5. A move below that level would increase the bearish bias and have traders looking back toward the 0.7100 support zone. Break below there, and sellers would gain even more control.
On the topside, if buyers can continue to defend support and keep the price above 0.71344, the focus would shift back toward the 0.71936–0.7200 resistance area. A break above that ceiling would be needed to give buyers more confidence that the downside momentum is fading.
