AUD/USD Price Analysis: Trades in the red, but eyes fourth straight monthly gain
- AUD/USD trades in the red amid overbought signals on the daily chart.
- The pair still appears set to end the month on a positive note.
AUD/USD is currently trading largely at 0.7173, representing a 0.17% decline on the day, having hit a multi-month high of 0.7197 on Wednesday.
Despite the pullback, the pair is still up 4% on a month-to-date basis. The Aussie dollar looks set to end higher for the fourth straight month, having rallied by 6%, 2.4% and 3.57% in April, May, and June, respectively.
The four-month winning streak is the longest since 2009 and has opened the doors for the test of a 50-month simple moving average hurdle, currently at 0.7279.
Supporting the bullish case is the 14-month relative strength index, which has crossed above 50.00 and is hovering at the highest level since early 2018.
However, a convincing break above the 50-month SMA may remain elusive for some time, as the 14-day RSI is now reporting overbought conditions with an above-70 print. As such, a pullback to the ascending 10-day SMA, currently at 0.7114, cannot be ruled out.
Monthly chart
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Trend: Bullish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
