- 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
-637885280754194807.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.