AUD/USD Price Analysis: Bulls need to strike 0.6770 with sheer confidence
- A rebound move after defending the two-year low at around 0.6680 has strengthened aussie bulls.
- The 50-EMA at 0.6713 has acted as major support for the antipodean.
- A bullish range shift by the RSI (14) will trigger an upside momentum.
The AUD/USD pair has rebounded sharply after correcting to near 0.6713 in the Tokyo session. The asset is gaining strength amid a firmer establishment above the round-level hurdle of 0.6700. The major has breached the immediate resistance of 0.6732 and is attempting to sustain above the same.
On an hourly scale, the commodity-sensitive currency has bounced sharply after testing the two-year low at around 0.6680. The formation of the Double Bottom chart pattern indicates lower selling pressure while testing the lows again and dried selling resulted in a vertical upside move. The road ahead is not easy for the antipodean and will find hurdles around the horizontal resistance placed from September 1 low around 0.6770.
The 50-period Exponential Moving Average (EMA) at 0.6713 has acted as a major cushion for the counter. While, the 200-EMA at 0.6754 is still higher, which could spoil the mood of Aussie investors.
The Relative Strength Index (RSI) (14) is on the verge of shifting into the bullish range of 60.00-80.00, which will deliver a vertical upside ahead.
Aussie bulls will strengthen further if the asset surpasses the above-mentioned critical hurdle at 0.6770. This will drive the asset towards September 5 high at 0.6832, followed by the previous week’s high at 0.6916.
Alternatively, a break below the above-mentioned demand zone will drag the asset towards the round-level support at 0.6600. A slippage below the latter will drag the asset towards the 25 May 2020 low at 0.6520.
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.
