AUDUSD remains locked in a flat channel between 0.70100 and 0.71500, stuck in a range that has traders watching closely for the next move. Technicals suggest buyers are quietly stockpiling ammunition, while Australian fundamentals stay surprisingly supportive—even as geopolitical storms rage in the Middle East. This is the wind beneath the pair's wings, keeping it afloat while quietly fueling the next leg higher.
Bollinger Bands are currently squeezing. When they narrow like this, volatility is building behind the scenes, often ahead of a breakout. In the meantime, quotes are holding above the midline at 0.70556, making sure that the bullish bias remains unshaken. And with the pair hanging in the upper half of the channel, the odds tilt toward testing the top.
Volumes tell the same old story. The Chaikin Oscillator stays in positive territory—a sign that buying pressure is still the underlying theme. Today's slight dip is typical, as it is a natural phase of consolidation near resistance. So, beneath the surface, bulls are pulling the strings.
Then there is the Reserve Bank of Australia (RBA). Governor Bullock surprised everyone by leaving a March rate hike on the table—a sharper stance than the pause-until-May consensus many had priced in. Right now, this factor is giving the Aussie a subtle but real tailwind.
However, geopolitics won't cooperate. When tensions in the Middle East flared up, investors did what they always do: sold risky assets like AUD and grabbed USD as a safe haven. Such a gravitational pull is the only thing keeping the pair from breaking higher.
So where does that leave us? The current pullback looks corrective, not structural. With buying power accumulating and fundamentals being supportive, the stage is set for the uptrend to continue—provided a catalyst emerges. Eventually, something has to give. A spark could send prices toward 0.71500 and beyond. Until then, expect more flat movement with a bullish bias.
Consider the plan down below for your trading activities:
Buy AUDUSD from current levels around 0.70800. Lock in profits at 0.71450. Place Stop Loss at 0.70280.
This forecast holds true from March 3 till March 10, 2026.
This content is for informational purposes only and is not intended to be investing advice.
