AUDUSD Trades Within a Developing Bearish StructureAUD/USDOANDA:AUDUSDWendy_GraceAUDUSD is currently stabilizing after a sharp downside expansion earlier in the week. Price continues to move within a descending channel while reacting around nearby liquidity zones. Market Context The Australian dollar has recently faced pressure as global currency markets adjust to shifting expectations around interest rates and macroeconomic data. Movements in the US dollar, along with broader risk sentiment, often play a significant role in AUDUSD volatility. When risk appetite weakens or USD demand increases, AUDUSD tends to experience downside pressure. In this environment, short-term structural shifts can develop quickly as liquidity is cleared from both sides of the market. Current Observation On the H1 timeframe, AUDUSD previously formed a temporary recovery phase before encountering resistance near the 0.7120 region. After failing to sustain higher prices, the structure shifted as price produced a strong bearish move that broke below prior support, confirming a break of structure (BOS). Since then, price has been trading within a descending channel while reacting near the 0.6977 liquidity area where sell-side pressure previously expanded. The 0.7047 region now acts as a nearby internal resistance where the market recently paused during the pullback. Trade Areas in Focus 🟥 Sell Liquidity Area Entry: 0.7040 – 0.7050 Invalidation: 0.7085 This zone aligns with the internal resistance area and the descending structure visible on the chart. If price retraces into this region, it could become an area where sellers re-enter in line with the current bearish structure. 🟩 Buy Liquidity Area Entry: 0.6977 – 0.6965 Invalidation: 0.6930 The lower zone represents a recent liquidity sweep area where price previously reacted. Markets often revisit these areas before deciding whether to continue the trend or initiate a broader retracement. These zones represent key liquidity pockets where reactions may occur depending on order flow. Forward Awareness The main factor to monitor in the coming sessions is whether price continues respecting the descending channel. A rejection near the internal resistance could reinforce the bearish structure and potentially lead to another test of the lower liquidity zone. However, if price begins reclaiming the mid-range area, it may signal that the market is entering a broader consolidation phase rather than immediate continuation. Closing Observation AUDUSD is currently navigating a transition phase after breaking prior structure. How price behaves around the nearby resistance and liquidity zones may provide further clues about the next short-term directional move.