AUD/USD Price Analaysis: A countertrend trader's setup in the making?

AUD/USD bears have taken over, but there are bullish prospects from here.
The price would now be expected to correct a significant portion of the drop in the sessions ahead.

Ross J Burland FXStreet

The price has run into what would be expected to be a strong area of support and given the imbalance, a correction is the most probable next scenario. Looking back at the price action, it would appear that there is a huge imbalance all the way back to the 0.7450s. This also coincides with a 61.8% Fibonacci as well as a smoothed 200 hourly moving average.

That is not to say that the price can necessarily reach that far immediately, but bulls will be aware of that area of liquidity and will potentially want to target there in due course.

From a 15-min perspective, the 0.7440s is a more probable level that could be more easily achieved in the short term:

As illustrated, the 21-EMA meets with this area of potential interest and the drop from there was sudden, so there is some mitigation that needs to happen which most probably would lead to a restest of the 21-EMA in the coming sessions.

With that being said, a break of daily support opens risk to the 0.7380s:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.