AUD/USD: Liquidity and Flow Analysis at the 0.7100 Barrier

The immediate battleground is defined by a clear shift in order flow. The pair is trading near 0.7094, having recently broken below the key 0.7100 support level. This breach signals a change in market structure, with the former resistance now acting as a new ceiling for sellers.

The primary liquidity zones are now set. The next major support is at 0.7050, with a deeper correction risk if that level fails. Above, the immediate resistance is the broken 0.7100 level, followed by the 0.7155 year-high. Daily price action shows mixed momentum, but the weekly chart highlights the vulnerability of the 0.7050 support.

Trading volume increased significantly during the decline, suggesting strong conviction among sellers. This flow activity confirms the technical breakdown and sets the stage for a test of the next support zone. The setup is one of a broken level with concentrated liquidity below, making the 0.7050 level the next critical point for order flow.

The Flow Barriers: Support and Resistance Levels

The critical flow barriers are now defined by specific price levels where liquidity pools concentrate. A decisive break above the 0.7100 break level would target the 0.7155~ year high of February 2023, with the next major resistance at 0.7185~ current year high of 11 March. This path represents a flow of buyers seeking to reclaim the recent highs.

Conversely, a break below the 0.7050 congestion support opens the path to 0.7000 congestion. A further close below the 0.6945 weekly low of 3 March would confirm a deeper correction, targeting 0.6900 break level. This scenario signals a flow of sellers taking control.

The 0.7100 level is a critical psychological and technical barrier, having contained price advances multiple times since 2022. Its current status as broken resistance makes it the immediate battleground. The flow of liquidity is now poised for a decisive move, either up toward the 0.7155–0.7185 range or down toward 0.7000 and below.

The Flow Catalysts: What Triggers the Move

The immediate catalyst is a decisive break at either the 0.7100 resistance or the 0.7050 support. The pair is currently pressuring resistance at 0.7100, which is now the critical level to watch. A sustained move above it would clear the immediate technical hurdle and signal a shift in flow toward the next resistance at 0.7155~ and 0.7185~.

Conversely, a break below the 0.7050 support is the primary bearish trigger. That level is a major congestion zone, and a failure there would open the path to 0.7000 and the 0.6945 weekly low. The flow dynamics here are clear: the market is testing these two barriers for a decisive move.

Volume and order flow at these levels will confirm the strength of the breakout. The recent decline saw significant volume increase, suggesting strong seller conviction. The same pattern will be key on the upside. Traders should watch for volume spikes on either side of the 0.7100/0.7050 range to gauge which flow is dominant.