AUD/USD Price Analysis: Rises above 50-HMA, bull reversal in the making?

The sell-off in the AUD/USD seems to have run out of steam.
The pair is currently trading above the 50-hour average.
A close above 0.6765 would confirm a bullish reversal candlestick pattern on the daily chart.

Omkar Godbole FXStreet Contributor

AUD/USD has moved above the 50-hour moving average (HMA) in Asia, but the bulls are not out of the woods yet. A daily close above 0.6765 is needed to confirm a bullish reversal pattern.

Long-tailed candle

The pair created a long-tailed candle on Tuesday, signaling bearish exhaustion. If the follow-through is strong in the form of a convincing close above 0.6765 on Wednesday, a bullish reversal candlestick pattern would be confirmed on the daily chart.

At press time, AUD/USD is trading at 0.6772 - above Tuesday's high of 0.6765, where the 5-hour MA is currently placed. If a bullish close remains elusive, the pair could trade in a sideways manner for a few days.

Meanwhile, acceptance under Tuesday's low of 0.6737 would imply a continuation of the sell-off from the Jan. 2 high of 0.7016.

The Australian inflation data for December bettered estimates, forcing markets to scale back expectations for an RBA rate cut on Feb. 4. Further, the futures on the S&P 500 are pointing to risk reset. AUD/USD, therefore, is more likely to print a bullish close above 0.6765.

A bearish close may be seen if the US Federal Reserve sounds hawkish, yielding a broad-based US dollar rally.

Daily chart

Trend: Bullish

Technical levels

AUD/USD

Overview
Today last price	0.6772
Today Daily Change	0.0014
Today Daily Change %	0.21
Today daily open	0.6758

Trends
Daily SMA20	0.6881
Daily SMA50	0.6869
Daily SMA100	0.6842
Daily SMA200	0.6875

Levels
Previous Daily High	0.6766
Previous Daily Low	0.6736
Previous Weekly High	0.6889
Previous Weekly Low	0.6817
Previous Monthly High	0.7033
Previous Monthly Low	0.6762
Daily Fibonacci 38.2%	0.6747
Daily Fibonacci 61.8%	0.6755
Daily Pivot Point S1	0.6741
Daily Pivot Point S2	0.6723
Daily Pivot Point S3	0.6711
Daily Pivot Point R1	0.6771
Daily Pivot Point R2	0.6783
Daily Pivot Point R3	0.6801

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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