- An establishment above 38.2% Fibo retracement and 200-EMA bolsters a bullish reversal structure.
- The RSI (14) has shifted into a bullish range of 60.00-80.00 which indicates a sheer upside momentum.
- A bull cross, represented by 20-and 200 EMAs adds to the upside filters.
The AUD/USD pair is oscillating in a narrow range of 0.6955-0.6966 in the early London session after a downside move from an intraday high near 0.6980. The asset has witnessed a steep fall after failing to sustain above Friday’s high at 0.6977. However, the upside trend has not turned down yet.
On a four-hour scale, the asset has comfortably established above the 38.2% Fibonacci retracement (which is placed from June 3 high at 0.7283 to July 14 low at 0.6680) at 0.6920. The major has failed to kiss the 50% Fibo retracement for the second time, which is placed at 0.6984.
Also, an establishment above the 200-period Exponential Moving Average (EMA) at 0.6900, adds to the upside filters. A bull cross, represented by the 20-and 200-EMAs at 0.6903 indicates more gains ahead.
Adding to that, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates the continuation of a bullish momentum ahead.
Should the asset oversteps Monday’s high at 0.6965, aussie bulls will drive the asset towards the psychological resistance at 0.7000. A breach of the latter will infuse fresh blood and the asset may record a high of June 16 high at 0.7069.
On the flip side, a steep fall below the round-level support of 0.6800 will strengthen the greenback bulls. This may decline the pair towards July 13 low at 0.6724, followed by July 14 low at 0.6680.
AUD/USD four-hour chart
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