The AUD/USD experienced a volatile 24-hour cycle, driven by shifting equity market sentiment. After a sharp decline yesterday fueled by a sell-off in stocks, the “Aussie” found its footing. As risk appetite returned to the broader market, the pair staged a resilient rebound, setting up a critical technical confrontation today.
A Significant moving average Breach and Recovery
Yesterday’s price action was technically significant. For the first time since November 25, 2025, the AUD/USD broke below its 200-bar moving average on the four hour chart (MA) near 0.6986.
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The Low: Momentum carried the pair to a daily low of 0.6943 before buyers stepped back in and push the price back above the moving average level in the US session yesterday.
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The Retest: During the Asian-Pacific session today, sellers returned, and attempted to push the price lower and through the moving average twice. However, after failing to gain traction below the 200-bar MA, the “risk-on” sentiment from a surging US stock market flipped the script, turning sellers into buyers.
The “Wall of Resistance” at 0.7073 – 0.7077
The current recovery has pushed the AUD/USD into a dense cluster of moving averages that are now acting as a formidable ceiling:
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100-hour MA: 0.7073
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200-hour MA (4-hour chart): 0.70779
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100-bar MA (4-hour chart): 0.70779
The daily high of 0.7077 stalled exactly within this zone
