AUD/USD Price Analysis: Strikes two-day old resistance around 0.6550, upside seems favored
- AUD/USD has jumped to near a two-day high at 0.6547 amid a cheerful market mood.
- A seven-day long consolidation in a 0.6390-0.6547 range is likely to explode sooner.
- The RSI (14) has shifted its range to the bullish territory of 60.00-80.00.
The AUD/USD pair is advancing firmly right from the initial tick amid an improvement in the risk appetite of the market participants. The asset has reached near Tuesday’s high at around 0.6547 and is expected to overstep the same with sheer confidence as commodity-linked currencies have hogged the limelight.
A seven-day long consolidation on an hourly scale after reporting a fresh two-year low at 0.6363 is indicating a bullish reversal ahead. The asset is displaying the balanced auction profile in a 0.6390-0.6547 range. The chartered region will be marked as the most auctioned region forward.
The aussie bulls have driven the asset above the 50-and 200-period Exponential Moving Averages (EMAs) at 0.6492 and 0.6508, which adds to the upside filters. A formation of a golden cross, which is represented by the bullish cross of 50-and 200-EMAs, will strengthen the aussie bulls further.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted its oscillation range from 40.00-60.00 to 60.00-80.00, which indicates that upside momentum has been triggered.
Going forward, a break above Tuesday’s high at 0.6547 will drive the asset towards and September 22 high at 0.6670 and September 18 high at 0.6734.
Alternatively, a drop below the two-year low at 0.6363 will drag the asset towards the 16 April 2020 low at 0.6264, followed by the round-level support at 0.6100.
AUD/USD hourly chart
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.
