AUD/USD, Time frame: 4H, Source: TradingViewAUD/USD, Time frame: 4H, Source: TradingView

AUD/USD continues to respect a well-defined ascending channel on the 4-hour chart, with the sequence of higher highs and higher lows remaining intact. Recent reactions from the lower boundary near 0.7040 highlight consistent buying interest on pullbacks, reinforcing the broader recovery structure.

Buyers Defend Key Support

The latest pullback found support near the lower trendline before price reclaimed the 20-period moving average at 0.70597. This recovery suggests demand remains active, with buyers continuing to defend dips within the channel.

Bollinger Bands Point to Higher Prices

Price rebounded cleanly from the lower Bollinger Band and has since moved back above the mid-band. The recovery places focus on the upper Bollinger Band near 0.7080, which aligns closely with channel resistance and represents the next key upside test.

Momentum Remains Constructive

The RSI (14) is holding at 60.48, comfortably above both the neutral 50 level and its signal line at 57.02. This points to improving bullish momentum without yet reaching overbought conditions.

Channel Resistance Now in Focus

AUD/USD is currently trading near the upper half of the channel, bringing the 0.7070-0.7080 resistance area into focus. Previous rallies have stalled around this region, making it an important technical barrier within the existing trend.