- Aussie bulls have strengthened after an upside break of the 0.6713-0.6770 range.
- A step into the prior balance profile has bolstered the odds of a bullish reversal.
- The RSI (14) has shifted into the bullish range of 60.00-80.00.
The AUD/USD pair is advancing sharply higher after establishing above the critical resistance of 0.6770 in the Asian session. The asset has witnessed a bullish open test-rive session in which bulls remain in control right after defending the downside bias in from the first tick. Also, the major has given an upside break of the consolidation formed in a 0.6713-0.6770 range.
On an hourly scale, the aussie bulls have stepped into the prior balanced profile (placed in a 0.6770-0.6850 range), which resulted in a bearish imbalance. Investors should be aware of the fact that an entry into the prior balanced auction bolsters the odds of a bullish reversal.
The 20-and 50-period Exponential Moving Averages (EMAs) have delivered a bullish crossover at 0.6747, which indicates more upside ahead.
Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which dictated that upside momentum has been triggered.
A minor corrective move towards the round-level support at 0.6800 will trigger a bargain buy opportunity for investors, which will drive the asset towards August 29 low at 0.6841, followed by August 31 high at 0.6904.
Alternatively, the antipodean could lose momentum if the asset drops below Thursday’s low at 0.6713. An occurrence of the same will drag the asset towards 6 March 2020 high at 0.6657 and the 27 April 2020 high at 0.6570.
AUD/USD hourly chart
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