As discussed in our April 02 analysis, AUDUSD was approaching a key support zone where a potential completion of the corrective phase was expected. At that time, we highlighted that price action was nearing the end of the correction and that a bullish reaction could develop if support held. CLICK HERE
AUDUSD is now pushing quite aggressively to the upside, with price breaking out of the corrective channel and moving above previous swing highs. This confirms that the market has entered at least a temporary recovery phase, with room for further upside in the near term.
More importantly, price action suggests the potential start of a new impulsive bullish sequence, which could continue after the next retracement. However, confirmation will depend on how the market behaves during upcoming pullbacks.
Support remains around 0.7014, as previously mentioned. As long as this level holds, the bullish structure remains intact. We should also remain above 0.6930; a break below this level would increase the probability of a more complex black wave IV scenario, potentially forming a triangle or extended corrective structure.
In either case, over the coming weeks, AUDUSD still has the potential to retest and possibly extend toward new 2026 highs if the broader bullish structure continues to develop.
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