AUD/USD Price Analysis: Attempts establishment above 38.2% Fibo retracement at 0.6920
- Aussie bulls are aiming to sustain above 38.2% Fibo retracement around 0.6920.
- Advancing 20-and 50-period EMAs add to the upside filters.
- The RSI (14) has shifted into the 40.00-60.00 range after a mild correction.
The AUD/USD pair is attempting to hold itself above the crucial support of 0.6900 after a sharp decline in the initial hours of the Tokyo session. A rebound move by the aussie bulls seems firmer and many get strengthened further after overstepping 0.6920.
On a four-hour scale, the asset is focusing on surpassing 38.2% Fibonacci retracement (which is plotted from June 3 high at 0.7283 to July 14 low at 0.6680) at 0.6920. Earlier, the major failed to kiss the 50% Fibo retracement, which is placed at 0.6984.
The greenback bulls have attacked the 20-period Exponential Moving Average (EMA) near 0.6900. While the 50-EMA at 0.6867 is untouched from the past week. Advancing short-term EMAs add to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has slipped into a 40.00-60.00 range from the bullish range of 60.00-80.00. This doesn’t warrant a bearish reversal, however, the asset is facing a minor correction after printing a monthly high of 0.6977.
Should the asset overstep 38.2% Fbo retracement at 0.6920 firmly, aussie bull will regain its mojo and will drive the asset towards June 28 high at 0.6965. A breach of the latter will send the major towards the psychological resistance at 0.7000.
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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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.
