AUD/USD Price Analysis: Faces hurdle around 0.6900 after defending 0.6850s demand zone
- Aussie bulls have defended the demand zone in a range of 0.6850-0.6867.
- The RSI (14) has reclaimed the 40.00-60.00 range, which signals a responsive buying action.
- The trendline placed from 0.7070 will act as a major hurdle for the pair.
The AUD/USD pair has witnessed a firmer rebound after failing to sustain below 0.6860. A responsive buying action has driven the asset strongly above 0.69000. However, a mild correction has turned the asset sideways.
On an hourly scale, aussie bulls have attracted some significant bids after testing the critical demand zone placed in a narrow range of 0.6850-0.6867. A responsive buying action has been witnessed, which strengthened the asset to attack the 50-period Exponential Moving Average (EMA) at 0.6898. While, the 200-period EMA at 0.6930 is still higher than the asset, which indicates that the long-term trend is still down.
Meanwhile, the Relative Strength Index (RSI) (14) has reclaimed the 40.00-60.00 range, which signals that the aussie bulls are no weaker now.
It is worth noting that trendline placed from June 16 high at 0.7070, adjoining Tuesday’s high at 0.6965 will continue to act as major resistance for the counter.
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
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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.
