AUD/USD Price Analysis: Refreshes day’s high at 0.6920 as USD Index drops

The AUD/USD pair has overstepped its immediate resistance of 0.6917 in the early European session. The Aussie asset has picked strength amid selling pressure in the US Dollar Index (DXY) after the latter failed to surpass the immediate resistance of 103.00.

The market mood is still quiet as S&P500 futures are marginally higher. Out of the major FX currencies, the Australian Dollar is performing better. It seems that the resumption of Australian coal imports by Chinese companies is strengthening the Australian Dollar in comparison with other risk-perceived currencies.

On a four-hour scale, the Aussie asset has resumed its upside journey after sensing support around the demand zone plotted in a 0.6884-0.6896 range. The 20-period Exponential Moving Average (EMA) at 0.6884 is acting as major support for the Australian Dollar. Upward-sloping 50-EMA at 0.6840 indicates that the upside bias is still solid.

Meanwhile, the Relative Strength Index (RSI) is on the edge of recapturing the bullish range of 60.00-80.00, which will trigger the bullish momentum.

For further upside, the Aussie asset needs to surpass Tuesday’s high at 0.6937, which will send the major near the psychological resistance at 0.7000. After conquering 0.7000, Aussie bulls will march towards August 11 high at 0.7137.

On the contrary, a downside move below December 29 low at 0.6710 will drag the major further towards December 22 low at 0.6650 followed by November 21 low at 0.6585.

AUD/USD four-hour chart