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AUD/USD is in an overall upward trend, continuing to make higher highs and lows than previously, which reinforces the continuation of positive price action momentum. The pair is currently trading within a trading range between the 0.71016 level, which represents the last low recorded by the price, and the 0.72777 level, which represents the last recorded high.

Based on the above trading range, and using the Modified Fibonacci tool extending from the 0.71016 level to the 0.72777 level, we note that the current price is located around the 78% Fibonacci level of 0.71391 and the 88% Fibonacci level of 0.71227, which are generally considered to be areas of demand that may support an upward price rebound.

In addition to price concentrating on important demand areas, the pair also witnessed a strong rebound, forming a positive pattern in the Japanese candlestick known as the Morning Star (indicated in yellow). This pattern is often used to indicate the likelihood of a trend changing from bearish to bullish.
This rally also coincides with the price approaching the 200-period simple moving average, which is often considered one of the most important dynamic support levels for sustaining the upward trend of any financial asset, and vice versa.

Based on the above technical data, the price concentration in the demand zone, the rebound from the 200-period moving average, and the formation of a positive pattern in the bullish structure are all factors that support the possibility of a continued rise to the 0.72394 level in the short to medium term.
However, if the price breaks below the 0.71016 level and establishes a base below, it may signal weakness in the uptrend and the short- to medium-term trend may turn bearish.

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