AUD/USD: Setting Up for a Short Correction Against Recent Bullish Momentum

Technical Confluence Pointing South

The AUD/USD pair has seen some strong bullish momentum recently, pushing up by 0.39% over the last 24 hours to its current price of 0.65455, with the day range spanning from 0.65073 to 0.65837. While the short-term trend has been bullish, my technical analysis indicates we're approaching a key inflection point where this strength might exhaust. I'm observing significant resistance around the 0.6584 level, which aligns with the upper bound of recent price action. Furthermore, the psychological 0.66 mark, followed by 0.665, represent robust overhead supply zones.
My strategy is to position for a swing short, anticipating a retracement from these resistance levels. I'm looking for an entry at 0.65577, aiming to capitalize on a push into that initial resistance before a reversal. On the higher timeframes, I'm seeing early signs of bearish divergence on the RSI, suggesting that the buying pressure is losing conviction despite the price making new highs within this range. The confluence is strong here, with price action meeting key resistance, signaling a potential turn.

Risk Management and Fundamental Considerations

For this setup, disciplined risk management is paramount. My proposed Stop Loss is placed at 0.