AUD/USD Price Analysis: Aims to conquer 0.7000 amid a cheerful market mood

The AUD/USD pair is displaying a sideways auction around the immediate hurdle of 0.6930 in the Asian session. The Aussie asset is expected to continue its upside journey amid sheer volatility in the US Dollar Index (DXY). The USD Index has dropped below 103.25, at the time of writing, and is expected to refresh its six-month low below the critical support of 103.00 amid a risk-appetite theme.

S&P500 futures have carry-forwarded Friday’s strength as investors see a slowdown in the policy tightening pace by the Federal Reserve (Fed) ahead. Meanwhile, the 10-year US Treasury yields dropped to 3.56%.

On a four-hour scale, the Aussie asset has delivered an upside break of the horizontal resistance plotted from December 13 high around 0.6880, which has turned into support now. Also, the breakout of the Rising Channel chart pattern indicates the strength of the Australian Dollar.

Upward-sloping 20-and 50-period Exponential Moving Averages (EMAs) at 0.6833 and 0.6800 respectively add to the upside filters.

Also, the Relative Strength Index (RSI) (14) has delivered a breakout into the bullish range of 60.00-80.00, which indicates that the upside momentum has been triggered.

After a juggernaut rally, a corrective to near December 13 high around 0.6880 would be an optimal buy for investors, which will drive the major towards Monday’s high at 0.6930, followed by the psychological resistance at 0.7000.

On the contrary, a downside move below December 29 low at 0.6710 will drag the major further toward December 22 low at 0.6650 followed by November 21 low at 0.6585.

AUD/USD four-hour chart