AUD/USD Shows Bearish Reversal Signs Near 0.7150 After 500-Pip Rally

AUD/USD is showing signs of exhaustion near the 0.7150 handle after an impressive 500-pip rally that began on January 19. The pair closed last week with two consecutive bearish daily candles, raising concerns that a near-term pullback may be underway. Technical indicators suggest the rally has overextended, with momentum fading at the current resistance zone around 0.7150. The sustained move higher had been driven by improved risk appetite and Australian dollar strength, but buyers appear to be losing conviction at these elevated levels. Key support on the downside sits near the 0.7050–0.7000 region, which aligns with prior consolidation areas during the rally. A decisive break below 0.7000 could accelerate selling pressure toward the 0.6900 zone. Conversely, if bulls manage to reclaim ground above 0.7150 with conviction, the next upside target would shift toward 0.7200. Traders should watch for confirmation of the bearish reversal through increased selling volume and further closes below short-term moving averages before positioning for a pullback.