- AUD/USD is eyeing 0.7314 amid a positive tone in the market.
- The RSI (14) is oscillating in a range of 60.00-800, which adds to the upside filters.
- Bulls need to surpass 0.7268 for a fresh rally ahead.
The AUD/USD pair is trading back and forth in a narrow range of 0.7255-0.7268 in the Asian session. The major has witnessed a juggernaut rally after breaching the symmetrical triangle (placed between lower trendline from Friday’s low at 0.7140 and upper trendline from Thursday’s high at 0.7285) on Monday. Usually, a symmetrical triangle denotes a slippage in the standard deviation in the early stage and hence followed by a breakout in the same.
On a 15-min scale, AUD/USD is juggling in a narrow range after a ramp-up move towards the north, which hints at a build-up of significant bids by investors who failed to initiate long positions in the previous rally.
The Relative Strength Index (RSI) (14) is oscillating in a range of 60.00-80.00, which indicates the strength of bulls and adds to the upside filters.
The 50-period and 200-period Exponential Moving Averages (EMA) are scaling higher and confirm the establishment of a bullish bias.
Considering the ongoing price action and upside filters, a further upside move on Tuesday cannot be ruled out.
For an upside, bulls need to overstep the consolidation’s highest offered price at 0.7268, which may send the major higher towards Thursday’s high at 0.7285 and January 13 high at 0.7314 respectively.
On the flip side, bears can take control, if the spot slips below consolidation’s low at 0.7255 towards Friday’s high at 0.7238, followed by the 200-EMA at 0.7218.