The AUDUSD is charging toward new daily highs, decisively extending its rally beyond the February 12 peak of 0.7146. The pair recently touched 0.7189 following news that the International Energy Agency (IEA) will release 400 million barrels of oil from strategic reserves—a massive move aimed at stabilizing global prices amid anxieties surrounding the Iranian conflict.
Technical Breakdown: The Hourly Chart
Price action turned bullish during the Asian session after a brief, failed attempt to break above the February high yesterday. Once the price reclaimed the 0.7146 level, momentum accelerated, pushing the pair to a new yearly high of 0.71847.
During the European morning, we saw a healthy “retest” where the price rotated lower but found a firm floor of buyers near that same February high. This successful support test provided the springboard for the current leg up.
Key Levels to Watch
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The Bull Case: As long as the AUDUSD maintains its footing above 0.7146, the bias remains firmly bullish. Traders are now eyeing the next major resistance target at 0.7270 on the daily chart—a level not seen since June 2022.
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The Bear Case: Conversely, a slip back below 0.7146 would signal a “failed breakout.” Such a move would likely lead to rapid profit-taking and disappointment among bulls, opening the door for a deeper corrective move to the downside.
