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AUDUSD is bouncing sharply today following the Reserve Bank of Australia’s decision to lift the key interest rate, a move that has added fresh fundamental support to the Australian dollar. The rate hike signals the RBA’s continued focus on inflation control, which has helped improve yield expectations and sentiment toward the Aussie.

From a technical perspective, AUDUSD has been in a strong bullish phase since breaking out of the base channel in mid-January. Such a breakout typically confirms the start of an extended impulsive move, indicating that wave three, or wave C, remains in progress rather than complete. This is further supported by the overall price structure, which continues to show higher highs and higher lows.
 

AUDUSD 4h Chart

At the cycle degree, the black wave three is still unfolding and is expected to subdivide into a full five-wave sequence. While short-term pullbacks and consolidations are possible, these should be viewed as corrective pauses within the broader uptrend rather than signs of trend exhaustion. The current retracement appears corrective in nature, suggesting that the market may be preparing for another leg higher.

Looking ahead, further upside is anticipated toward wave 5 of 3/C, provided price holds above the 0.69–0.70 support zone. This area represents not only a key psychological level but also an important technical support, where previous demand has been clearly visible. As long as this zone remains intact, the bullish scenario stays favored, with momentum expected to rebuild on dips.

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