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AUD/USD Price Analysis: Bulls look firmer above 38.2% Fibo retracement, 0.7600 eyed

  • AUD/USD is approaching toward the trendline placed from 0.8008 on firmer RSI (14).
  • The pair has overstepped the 38.2% Fibo retracement, which adds to the upside filters.
  • Bears can take charge if the major slips below 200-EMA low at 0.7300.

The AUD/USD pair continues its three-day winning streak on Monday after a subdued opening. The major has breached Friday’s highest traded price at 0.7381 and is approaching towards the trendline placed from February 25, 2021, high at 0.8008.

On the daily scale, AUD/USD has established a bullish bias after overstepping the 38.2% Fibonacci retracement at 0.7364, which is placed from February 25 high at 0.8008 to January 28 low at 0.6966. The major is comfortable holding above 50-period and 200-period Exponential Moving Averages (EMA), which are trading near 0.7210 and 0.7300 respectively, and add to the upside filters.

The Relative Strength Index (RSI) (14) has crossed 60.00 after oscillating in a range of 40.00-60.00, which indicates a trigger for a fresh rally after a brief consolidation.

From the observations of a bullish range shift in the RSI oscillator and has surpassed 38.2% Fibo retracement, a bullish momentum going forward is very much on cards. To elevate gains, bulls need to violate November 08 high at 0.7432. Breach of 0.7432 will send the pair towards 50% Fibonacci retracement at 0.7487 and October 28 high at 0.7557.

On the flip side, bulls can lose confidence if the major slips below 200-EMA low at 0.7300. This will drag the pair towards the 50-EMA at 0.7227 and February 24 low at 0.7094.

AUD/USD daily chart

 

 

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