AUD/USD Price Analysis: Eyes a test of 200-day EMA on conquering 0.6700 resistance
- Quiet market mood on account of Thanksgiving Day has turned the Aussie asset sideways.
- An establishment of the AUD/USD pair above 0.6700 has strengthened the Australian Dollar.
- The 200-EMA at 0.6847 is expected to be smashed by the major sooner.
The AUD/USD pair is displaying back-and-forth moves in a 10-pips range in the early Asian session. The Aussie asset has turned sideways after printing a fresh weekly high at 0.6778 amid a quiet market mood on account of Thanksgiving Day.
Meanwhile, the USD Index (DXY) is still in the hangover of ‘less-hawkish’ cues from the Federal Open Market Committee (FOMC) minutes. The US Dollar is hovering below the critical hurdle of 106.00 amid the risk appetite theme.
On a daily scale, the Aussie asset has confidently established above the horizontal support plotted near July 14 low around 0.6700. The next hurdle for the Aussie asset is the 200-period Exponential Moving Average (EMA) at 0.6847, which has remained a major ceiling.
The 20-period EMA at 0.6616 is scaling higher, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) is focusing on shifting into the bullish range of 60.00-80.00, which will trigger a bullish momentum.
Going forward, a break above Thursday’s high at 0.6778 will extend the three-day winning streak, which will drive the asset toward the round-level resistance at 0.6800, followed by the 200-EMA at 0.6847.
On the flip side, the Australian Dollar could lose strength if the Aussie asset drops below Monday’s low at 0.6585. This will drag the major towards October 4 high at 0.6548 and November 2 high at 0.6493.
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.
