AUDUSD Rebounds From Triangle Support

AUDUSD is attempting to recover after a sharp September selloff pushed the pair back toward a major rising support line on the daily chart. Price has responded from the lower boundary of the broader consolidation structure, while the 4-hour chart is beginning to show signs that short-term bearish momentum is fading. A sustained move above 0.7000 could strengthen the recovery and draw price toward the daily fair value gap below 0.7100.

AUDUSD daily chart analysis

On the daily chart, AUDUSD remains inside a broad contracting triangle, defined by a descending resistance line from the May highs and a rising trendline connecting the major lows formed since March.

The latest decline brought price directly back toward the lower boundary of this structure around the 0.6900–0.6920 region. Buyers responded quickly, preventing a sustained breakdown and pushing AUDUSD back toward 0.6980.

The reaction is technically significant because the rising trendline has already acted as support on previous occasions. The Fractals indicator also marked a recent swing low around this area, reinforcing the importance of the lower boundary and showing that demand returned after the September selloff.

Momentum is beginning to improve as well. The RSI (14) currently stands at 39.59, recovering after moving close to the oversold 30 level. RSI remains below the neutral 50 line, so the recovery is not yet fully confirmed, but the rebound from near-oversold territory suggests that bearish momentum is losing intensity.

The immediate hurdle is 0.7000. This psychological and technical level sits directly above current price and needs to be reclaimed before the recovery can develop further.

Above 0.7000, attention shifts toward the daily fair value gap roughly between 0.7040 and 0.7090. The imbalance was created during the aggressive September decline and remains unfilled, making it a natural area of interest if buyers continue to regain control.

The upper edge of this zone sits close to 0.7100, which therefore represents the main daily recovery target.

Key Levels:

• 0.6900–0.6920: Rising trendline support and the recent daily swing-low region.
• 0.7000: Immediate resistance and the first important bullish confirmation level.
• 0.7040–0.7090: Daily fair value gap and potential upside magnet.
• 0.7100: Main recovery target and key horizontal resistance.

AUDUSD 4-Hour chart analysis

The 4-hour chart provides the first signs of a potential shift in short-term structure.

Since the September high above 0.7200, AUDUSD has traded inside a clearly defined descending channel, producing a sustained sequence of lower highs and lower lows. That structure weakened after price found support around 0.6910 and began building a base.

AUDUSD is now testing — and beginning to pierce — the upper boundary of the descending channel around the 0.6980 area. A confirmed breakout would be an important technical development, as it would signal that the bearish sequence controlling the market since early September is beginning to break down.

The Ichimoku indicator also shows a notable improvement. Price has reclaimed both the Tenkan-sen and Kijun-sen, while the Kumo ahead has narrowed substantially. The cloud remains an obstacle, so the Ichimoku structure has not yet delivered a complete bullish reversal signal, but the thinning Kumo reflects a clear reduction in bearish momentum.

The combination of a potential channel breakout, price trading back above the Tenkan-sen and Kijun-sen, and a weakening cloud strengthens the case for a test of 0.7000.

A clean break above 0.7000 would provide stronger confirmation and could accelerate the recovery toward the higher-timeframe imbalance. From there, the next important levels are located around 0.7040–0.7090, followed by 0.7100.

AUDUSD bullish recovery scenario

The daily and 4-hour charts are beginning to align around a recovery setup.

On the daily timeframe, AUDUSD has defended the lower boundary of its broad triangle, while RSI is recovering from near-oversold conditions. On the 4-hour chart, price is challenging the upper boundary of the descending channel, has reclaimed the Tenkan-sen and Kijun-sen, and is confronting an increasingly thin Ichimoku cloud.

The key level is now 0.7000. A sustained breakout above this resistance would strengthen the short-term reversal structure and bring the daily fair value gap into focus.

If buyers can establish price above the imbalance, 0.7100 becomes the principal upside objective.

Bullish path: 0.7000 → FVG at 0.7040–0.7090 → 0.7100