Figure: AUDUSD SD, H4, Source: TradingviewFigure: AUDUSD SD, H4, Source: Tradingview

The Australian Dollar against the US Dollar continues to trade within an overall bullish trend, recording higher highs and higher lows, which supports the continuation of positive price momentum. The pair is currently trading within a range between 0.71016, representing the latest higher low recorded by price action, and 0.72777, representing the latest recorded high.

Based on the trading range mentioned above, and using the Fibonacci retracement tool from 0.71016 to 0.72777, the current price is trading near the 78% Fibonacci level at 0.71391 and the 88% level at 0.71227. These levels are commonly considered demand zones that could support a bullish rebound in price.

In addition to trading within a significant demand zone, the pair witnessed a strong rebound that formed a positive Japanese candlestick pattern known as the “Morning Star,” highlighted in yellow. This pattern is commonly viewed as a potential signal of a reversal from a bearish trend to a bullish one.

Moreover, this rebound coincided with price trading near the 200-period Simple Moving Average, which is generally considered one of the most important dynamic support levels for maintaining a bullish trend in any financial asset, and vice versa in bearish trends.

Based on the technical factors mentioned above, including the presence of price within a demand zone, the rebound from the 200-period moving average, and the formation of a bullish candlestick pattern within an overall bullish structure, these factors support the possibility of continued upside movement toward the 0.72394 level over the short- to medium-term.

However, if price declines below the 0.71016 level and records a lower low beneath it, this could indicate weakening bullish momentum and a potential shift from a bullish to a bearish trend over the short- to medium-term.