AUD/USD Price Analysis: Faces hurdle around 0.6900 after defending 0.6850s demand zone
|- Aussie bulls have defended the demand zone in a range of 0.6850-0.6867.
- The RSI (14) has reclaimed the 40.00-60.00 range, which signals a responsive buying action.
- The trendline placed from 0.7070 will act as a major hurdle for the pair.
The AUD/USD pair has witnessed a firmer rebound after failing to sustain below 0.6860. A responsive buying action has driven the asset strongly above 0.69000. However, a mild correction has turned the asset sideways.
On an hourly scale, aussie bulls have attracted some significant bids after testing the critical demand zone placed in a narrow range of 0.6850-0.6867. A responsive buying action has been witnessed, which strengthened the asset to attack the 50-period Exponential Moving Average (EMA) at 0.6898. While, the 200-period EMA at 0.6930 is still higher than the asset, which indicates that the long-term trend is still down.
Meanwhile, the Relative Strength Index (RSI) (14) has reclaimed the 40.00-60.00 range, which signals that the aussie bulls are no weaker now.
It is worth noting that trendline placed from June 16 high at 0.7070, adjoining Tuesday’s high at 0.6965 will continue to act as major resistance for the counter.
The aussie bulls could lift the asset price higher if the major overstep Wednesday’s high at 0.6965. This will drive the asset towards the psychological resistance at 0.7000, followed by June 13 high at 0.7035.
On the flip side, the aussie bulls could lose their grip if the asset drops below June 23 low at 0.6868. This will drag the asset towards May 12 low and the round-level support at 0.6829 and 0.6800 respectively.
AUD/USD hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.