Bulls look to break out 0.7255-0.7268 consolidation range
- AUD/USD is targeting 0.7314 in a positive market tone.
- The RSI (14) oscillates in a range of 60.00 to 800, which adds to the filters on the upside.
- The bulls need to break above 0.7268 for a fresh rally ahead.
The AUD/USD pair is trading in a tight range from 0.7255 to 0.7268 during the Asian session. The major saw a juggernaut rally after breaking through the symmetrical triangle (placed between the lower trendline of Friday’s low at 0.7140 and the upper trendline of Thursday’s high at 0.7285) on Monday. Usually, a symmetrical triangle denotes a slippage in the standard deviation at the early stage and hence followed by a breakout in the same.
On a 15-minute scale, AUD/USD is range-bound juggling after a northerly surge, hinting at a buildup of large offers by investors who failed to initiate long positions. during the previous rally.
The Relative Strength Index (RSI) (14) is hovering in a range of 60.00-80.00 indicating the strength of the bulls and adding to the upside filters.
The 50 and 200 period exponential moving averages (EMA) are trending higher and confirm the establishment of a bullish bias.
Given the ongoing price action and upward filters, further upward movement on Tuesday cannot be ruled out.
For an upside, bulls need to break above the consolidation’s high offered price at 0.7268, which could send the high to Thursday’s high at 0.7285 and the January 13 high at 0.7314. respectively.
On the other hand, the bears can take control, if the spot slips below the consolidation low at 0.7255 to Friday’s high at 0.7238, followed by the 200-EMA at 0.7218.