AUD/USD Price Analysis: Fake break brings aussie bulls back inside the woods

Fake breakdown of the descending triangle has strengthened the aussie bulls.
The asset has captured the 50-period EMA at 0.6764 confidently.
A decisive move above 60.00 by the RSI (14) will accelerate the odds of a bullish reversal.

Sagar Dua FXStreet

The AUD/USD pair is marching towards the round-level resistance of 0.6800 after sensing a responsive buying action. The asset has rebounded firmly after hitting a low of 0.6730 in the Asian session. An escape from the fears of recapturing a two-year low at 0.6711 has strengthened the antipodean against the greenback.

A downside fake-out of the descending triangle formed on an hourly scale is indicating that the aussie bulls are not bearish for now. The downward sloping trendline of the above-mentioned chart pattern is plotted from June 16 high at 0.7070 while the horizontal support is plotted from June 1 low at 0.6763. The aussie bulls have returned to the volatility contraction pattern.

Aussie bulls have captured the 50-period Exponential Moving Average (EMA) at 0.6764, which indicates that the short-term trend is bullish now. However, the 200-EMA at 0.6802 is still higher than the prices.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting to hit 60.00 and a breach of the same will bring a bullish reversal for the counter.

Should the asset violate July 6 high at 0.6827. An occurrence of the same will drive the asset towards July 5 high at 0.6896, followed by June 30 high at 0.6920.

Alternatively, a drop below Monday’s low at 0.6713 will drag the asset towards the 29 May 2020 high at 0.6683. A breach of the latter will drag the asset towards the 30 April 2020 high at 0.6570.

AUD/USD hourly chart

AUD/USD

Overview
Today last price	0.678
Today Daily Change	0.0016
Today Daily Change %	0.24
Today daily open	0.6764

Trends
Daily SMA20	0.6876
Daily SMA50	0.6991
Daily SMA100	0.7169
Daily SMA200	0.7205

Levels
Previous Daily High	0.6804
Previous Daily Low	0.6724
Previous Weekly High	0.6896
Previous Weekly Low	0.6761
Previous Monthly High	0.7283
Previous Monthly Low	0.685
Daily Fibonacci 38.2%	0.6774
Daily Fibonacci 61.8%	0.6755
Daily Pivot Point S1	0.6724
Daily Pivot Point S2	0.6685
Daily Pivot Point S3	0.6645
Daily Pivot Point R1	0.6804
Daily Pivot Point R2	0.6844
Daily Pivot Point R3	0.6883

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.

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