AUDUSD is currently in recovery mode after the recent decline toward the 0.6920 support area. The market managed to stabilize, and on the 4-hour chart, price has now moved clearly above the black trend line, suggesting that a higher-degree recovery may already be underway.
However, while the short-term structure has improved, we still view this move as a counter-trend recovery within a broader bearish correction. In other words, the current advance could be forming a wave B recovery before the larger downside move resumes.
Looking at the daily chart, the five-wave impulse from the April 2025 lows appears to have been completed at the May highs. Since then, AUDUSD has entered the early stages of a larger corrective phase, which could eventually push the pair back toward the 0.6700 support area.
For now, there is still room for additional upside, with the 61.8% Fibonacci retracement level around 0.7120 acting as the next important resistance zone. If price reaches this area, we could see renewed selling pressure and the beginning of the next bearish leg.
Therefore, while the short-term outlook remains supportive for a further recovery, traders should be aware that the broader trend structure still favors a deeper correction unless AUDUSD can break above key resistance levels and invalidate the bearish scenario.
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