- AUD/USD has been pushing higher since the middle of the EU session.
- The pair is still 0.25% lower on Wednesday but is coming up to a critical point.
AUD/USD 4-hour chart
AUD/USD has been very sensitive to the risk environment recently. When stocks perform the Aussie dollar recovers and vice versa when stocks take a dive. Now the price has risen in line with that theory but there is an important zone coming up.
The chart highlights a 20 pip or so red zone close to 0.7200 that could halt the bulls. Beyond that, the old triangle structure could also provide some resistance too. If the dollar continues to retrace lower these levels could be testing in the coming sessions.
On the flip side, if the is a rejection the wave low at 0.700 is proving to be a formidable area. The psychological zone has been prominent for a while now and could provide support once again in the future.
The indicators are turning bullish at the moment. The MACD signal lines and histogram bars are above zero. The Relative Strength Index is nearly oversold but this will make a bearish failure swing pattern and could mean lower levels are to come.
The main theme on the chart remains the red area. If the price makes it there could be another reaction as it has been used so many times to great effect.
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Additional levels
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