AUD/USD Price Analysis: Bulls cross lends support above 0.7000

AUD/USD is fluctuating between gains and losses while trading above 0.7000, as the bull-bear tug-of-war extends into European trading.

After Monday’s risk-aversion-driven broader market sell-off, in the face of poor Chinese activity numbers, the aussie sees calmer tones this Tuesday.

The major consolidates the rebound, with the latest upside fuelled by the RBA minutes, even though the board said that the central bank is not on a pre-set tightening path. 

The Asian markets have also staged a tepid recovery amid expectations of more stimulus from Chinese authorities to revive the economic recovery. The risk reset has paused the dollar rally, for now, helping the aussie stay afloat above 0.7000.

From a short-term technical perspective, the pair continue to find demand at lower levels, as the 21 DMA has crossed the 100 DMA for the upside on a daily closing basis, confirming a bull cross.

Therefore, it could be safe to say that the sell-off triggered following a rejection at a critical horizontal 200-Daily Moving Average (DMA) at 0.7120 may be facing exhaustion.

The 14-day Relative Strength Index (RSI) has turned flat while above the midline, supporting the view of the ‘buy the dips’ trade.

Buyers need to crack the daily high of 0.7070, above which is the 0.7100 round figure.

On the flip side, the immediate downside cap aligns at 0.7000, below which sellers will look to challenge the 0.6970 demand area, where the 21 and 100 DMAs hang around.

AUD/USD: Daily chart

AUD/USD: Additional levels to consider