Overview:
AUDUSD has broken above a key weekly resistance level and is now holding above it, turning the level into support. This suggests a potential shift in higher timeframe structure.
Daily Chart:
The daily chart shows a clear breakout above the weekly resistance zone, followed by a healthy retracement back to retest the new support. Price action is respecting this level so far, reinforcing bullish bias.
4H Chart:
Despite the higher timeframe bullish structure, the 4H chart remains in a short-term downtrend. However, selling momentum is showing signs of exhaustion—with smaller candles, wicks to the downside, and slowing RSI/MACD signals.
I will wait for a trendline break or a higher low formation to confirm the end of this pullback before entering a buy.
Plan:
Bias: Bullish
Entry: After confirmation of 4H downtrend break
Targets: Next resistance zones on daily
Invalidation: If price closes back below weekly support