AUD/USD Price Analysis: Bulls eye fresh yearly highs around 0.7500
- Aussie bulls are advancing towards fresh yearly highs around 0.7500.
- Bulls are firmer above 20-EMA but hope 200-EMA to scale higher.
- The RSI (14) is set to breach 60.00, which will unfold a fresh rally ahead.
The AUD/USD pair is hovering near Thursday’s high at 0.7394 and is likely to continue its three-day winning streak amid upbeat sentiment in the market. Aussie bulls have witnessed an up-sided decisive move after recording a fresh monthly low at 0.7165.
On a daily scale, AUD/USD is auctioning in a rising wedge in which every pullback towards the lower end is considered as a buying opportunity by the market participants and a fresh impulse wave initiates towards the upper end. The upper end of the rising wedge is placed from January 13 high at 0.7315 and the lower end is marked from January 28 low at 0.6966.
The 20-period Exponential Moving Average (EMA) at 0.7276 is scaling higher while the 200-period EMA is flat around 0.7300.
The Relative Strength Index (RSI) (14) is on the verge of surpassing 60.00 and may trigger a fresh rally. The oscillator is not indicating any sign of divergence and overbought.
For more upside, the aussie bulls need to surpass Friday’s high at 0.7395. The violation of Friday’s high will drive the pair towards an 8 November 2021 high at 0.7432, which will be followed by the psychological level of 0.7500.
On the flip side, bears can dictate levels if the pair slip below March 8 high at 0.7348 decisively, which will send the major to 20-EMA at 0.7276. Breach of the latter will drag the asset towards February 18 high at 0.7229.
AUD/USD daily 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.
