Greenback bulls defend descending triangle, 0.6750 a key support

  • The confluence of the 50-EMA and the descending triangle has pushed the asset lower.
  • Aussie bulls have surrendered the cushion of the 20-EMA at 0.6822.
  • A (40.00-60.00) range by the RSI (14) indicates the unavailability of any potential trigger.

The AUD/USD pair is firmly declining after hitting a high of 0.6822 in the Asian session. The asset has displayed a steep reversal while attempting to surpass the 50-period Exponential Moving Average (EMA) at 0.6848. Now, the downside move has pushed the asset below the 20-EMA at 0.6822.

On a four-hour scale, the pair is auctioning in a Descending Triangle pattern whose downward-sloping trendline is plotted from June 16 high at 0.7070. While the horizontal support is placed from July 1 low at 0.6764. The asset has sensed significant offers after attempting to surpass the downward-sloping trendline of the above-mentioned chart pattern.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals an indecisive move ahead due to the unavailability of any potential trigger.

Should the asset drop below July 1 low at 0.6766, the greenback bulls will drag the asset towards the 29 May 2020 high at 0.6683. A breach of the latter will drag the asset towards the 30 April 2020 high at 0.6570.

On the contrary, the greenback bulls could lose their grip if the asset violates Tuesday’s high at 0.6896. An occurrence of the same will drive the asset towards June 30 high at 0.6920, followed by June 28 high at 0.6965.

AUD/USD four-hour chart

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