- Stability above the supply zone placed in a 0.6900-0.6923 range will accelerate the upside momentum.
- The upward sloping trendline placed from July 14 low at 0.6680 will act as major support ahead.
- A range shift to 60.00-80.00 by the RSI (14) signals more gains ahead.
The AUD/USD pair has given an upside break of the consolidation formed in a range of 0.6883-0.6913 in the late New York session on Tuesday. The asset has refreshed its July high at 0.6927 and is aiming for more upside amid a weaker US dollar index (DXY).
Aussie bulls have tested the critical supply zone that is placed in a narrow range of 0.6900-0.6923. The asset may attempt to establish above the same in order to shift its auction profile higher. The upward sloping trendline placed from July 14 low at 0.6680, adjoining July 15 low at 0.6734 will act as key support for the counter.
The 50- and 200-period Exponential Moving Averages (EMAs) at .6864 and 0.6818 respectively are scaling higher, which adds to the upside filters.
Also, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates that the bullish momentum will continue further.
Should the asset correct minutely to Tuesday’s high at 0.6913, bargain buyers will initiate significant longs which will drive the asset towards June 28 high at 0.6965. A breach of the latter will send the major towards the psychological resistance at 0.7000.
A steep fall below the round-level support of 0.6800 will strengthen the greenback bulls. This may decline the pair towards July 13 low at 0.6724, followed by July 14 low at 0.6680.
AUD/USD hourly chart