AUD/USD Price Analysis: Aims to recapture previous week’s high around 0.6770
- AUD/USD has delivered an upside break of the consolidation formed in a narrow range of around 0.6720.
- An establishment above the 50-and 200-EMAs has shifted the long-term trend toward the upside.
- A 60.00-80.00 bullish range shift by the RSI (14) has activated the upside momentum.
The AUD/USD pair has delivered an upside break of the consolidation formed in a narrow range of around 0.6720 in the Asian session. The Aussie asset has accelerated above 0.6750 and is expected to recapture the previous week's high around 0.6770 ahead amid a decent improvement in investors’ risk appetite.
Meanwhile, the US Dollar Index (DXY) is facing stiff resistance around the crucial hurdle of 104.00 as a decline in the United States Personal Consumption Expenditure (PCE)-Price Index has cemented expectations of less-hawkish monetary policy by the Federal Reserve (Fed) ahead.
On an hourly scale, the responsive buying action in the Aussie asset around 0.6660 on Thursday has pushed the asset above the 50-and 200-period Exponential Moving Averages (EMAs) at 0.6703 and 0.6717 respectively. The Australian Dollar will record significant gains after surpassing the previous week’s high of around 0.6770.
Adding to that, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the bullish momentum has been activated.
After overstepping the previous week’s high around 0.6770 decisively, the Aussie asset will get exposed to the round-level resistance and December 14 high around 0.6800 and 0.6880 respectively.
On the contrary, a drop below December 12 low of around 0.6630 will drag the asset towards the round-level resistance at 0.6600, followed by November 8 high around 0.6550.
AUD/USD hourly chart
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
