AUD/USD – Technical Research Analysis
Timeframe: H1 (1 Hour)
Period Covered: Late December 2025 – January 6, 2026
Instrument: AUD/USD (Australian Dollar vs US Dollar)
Market Structure & Trend
Overall Structure:
AUD/USD has been in a broad bullish recovery phase since mid-December. Following a strong upward move from December 18, the market entered a healthy consolidation during the Christmas and New Year period.
Current Trend Bias:
Recent price action shows a clear formation of higher highs and higher lows. The pair has broken above a multi-day consolidation range, confirming that the short-term bullish structure remains intact.
This price behavior suggests a continuation-type structure rather than a reversal pattern.
Momentum & Price Behaviour
The market displayed a sharp V-shaped recovery around January 2, where a quick decline was followed by an equally strong rebound. This indicates strong buying interest and absorption of sell-side liquidity.
Recent candles show mild upper wicks near local highs, suggesting light profit-taking rather than aggressive selling. Overall momentum remains steady and controlled, not overextended.
Key Technical Zones
Resistance / Supply Areas:
0.6750: Immediate psychological reaction zone
0.6780 – 0.6800: Higher-timeframe supply area
Support / Demand Areas:
0.6720 – 0.6725: Previous resistance, now acting as a support-resistance flip zone
0.6680: Major structural support and base of the prior consolidation range
Key Price Action Observation
Price is currently trading above the former consolidation high, which reflects strength in the bullish structure. There is no clear breakdown signal or strong bearish rejection at present.
The bullish structure remains valid unless price shows a decisive breakdown below the 0.6680 support area.
Scenario-Based Outlook
Bullish Continuation Scenario:
If price sustains above the 0.6720 zone, the market may continue gradual upside expansion toward higher resistance areas. Any pullbacks are expected to remain corrective in nature.
Neutral / Corrective Scenario:
Failure to hold above the 0.6710 – 0.6720 region may lead to short-term consolidation or a shallow retracement. The overall structure remains constructive as long as 0.6680 holds.
Structural Weakness Scenario:
A strong hourly close below 0.6680 would indicate loss of bullish structure and could shift the market into a broader corrective or range-bound phase.
Overall Sentiment Summary
