AUD/USD About to Drop Before the Next Rally?AUD/USDOANDA:AUDUSDEdgeTradingJourneyAUD/USD is currently trading within a well-defined bullish structure, but price action is now interacting with a higher timeframe supply zone around 0.718–0.72, where we are already seeing signs of rejection. From a sentiment perspective, retail traders are heavily positioned short (83%), which typically supports a contrarian bullish outlook. This aligns with the broader structural bias, suggesting that dips are more likely to be bought rather than sold aggressively. Looking at the COT data, non-commercial traders remain net long on AUD, although there has been a reduction in positioning on both sides. This indicates a temporary slowdown in momentum rather than a shift in trend. On the USD side, the Dollar Index also shows a contraction in positioning, reinforcing the idea of a neutral-to-transitional phase rather than strong USD strength. Seasonality further supports the bullish narrative, as April has historically been a positive month for AUD/USD across multiple time horizons. From a technical standpoint, the presence of multiple Fair Value Gaps below the current price creates a clear magnet for price. The most probable scenario is a move lower into the 0.70–0.695 region, where price may find support and potentially resume the bullish trend. As long as the structure holds above the 0.685 level, the overall bullish bias remains intact.