AUD/USD Price Analysis: Bounces on Double Bottom, bullish reversal needs more filters

A double bottom formation is signaling a bullish reversal going forward.
Aussie bulls are attempting to balance above the 50-period EMA.
The RSI (14) is oscillating in a 40.00-60.00 range which signals a consolidation ahead.

Sagar Dua FXStreet

The AUD/USD pair is going through a correction phase after facing barricades around 0.6920 in the New York session. The asset displayed some signs of reversal on Thursday after finding bids while testing two-week-old support at 0.6850.

Aussie bulls have displayed a Double Bottom formation after sensing lower selling pressure while attempting to violate June 14 low at 0.6850. The appearance of a light selling pressure while testing the prior crucial support results in a short-term bounce that demands more filters to turn into a bullish reversal. The trendline placed from June 16 high at 0.7070 will act as a major resistance for the counter.

The antipodean is attempting to sustain above the 50-period Exponential Moving Average (EMA) at 0.6896, which will strengthen the aussie bulls further. While the 200-period EMA at 0.6925 is higher than the asset, which clears that the long-term trend is still down.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which signals the consolidation phase ahead.

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

AUD/USD

Overview
Today last price	0.6896
Today Daily Change	0.0015
Today Daily Change %	0.22
Today daily open	0.6881

Trends
Daily SMA20	0.7022
Daily SMA50	0.7061
Daily SMA100	0.7205
Daily SMA200	0.7228

Levels
Previous Daily High	0.6921
Previous Daily Low	0.6861
Previous Weekly High	0.6997
Previous Weekly Low	0.6868
Previous Monthly High	0.7267
Previous Monthly Low	0.6828
Daily Fibonacci 38.2%	0.6884
Daily Fibonacci 61.8%	0.6898
Daily Pivot Point S1	0.6855
Daily Pivot Point S2	0.6828
Daily Pivot Point S3	0.6795
Daily Pivot Point R1	0.6914
Daily Pivot Point R2	0.6947
Daily Pivot Point R3	0.6974

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.

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