AUD/USD Price Analysis: Pierces 50- and 200-EMAs near 0.7000 decisively, 0.7200 eyed
- A responsive buying interest in the demand zone has strengthened the aussie bulls.
- The 50- and 200-EMAs are expected to display a golden cross.
- Aussie bulls may get strengthened further if the RSI (14) oversteps 60.00.
A juggernaut rebound in the AUD/USD pair after the release of the Employment data has underpinned the antipodean against the greenback. The asset has managed to overstep the psychological resistance of 0.7000 decisively and is likely to extend its upside as the risk-off impulse is losing traction.
On an hourly scale, the asset has witnessed a strong reversal from its potential demand zone, which was placed in a narrow range of 0.6950-0.6962. The asset has forcefully pierced the 50- and 200-period Exponential Moving Averages (EMAs) at 0.6989, which could mark a golden cross between the EMAs. The formation of a golden cross will add to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has taken support from 40.00, which signals the emergence of a responsive buying action. The RSI (14) may attempt a violation of 60.00 that will trigger a bullish setup for the counter.
A minor pullback towards the psychological support of 0.7000 should be considered as a bargain buy opportunity for the market participants, which will send the asset towards May 4 low and round level resistance at 0.7092 and 0.7200, respectively.
Alternatively, the greenback could regain control if the asset drops below the above-mentioned demand zone in a 0.6950-0.6962 range. This will drag the asset towards May 16 low at 0.6872, followed by May 12 low at 0.6828.
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.
