- Aussie bulls look firmer above the 200-EMA at 0.7153.
- A Symmetrical Triangle formatting is advocating a rangebound move ahead.
- The RSI (14) has shifted into the 40.00-60.00, which signals a volatility contraction.
The AUD/USD pair has to witness a minor rebound after slipping below the crucial support of 0.7200 in the late Tokyo session. On a broader note, significant offers after an attempt to overstep the critical resistance of 0.7267 have pushed the asset into a rangebound territory.
A Symal Triangle formation on a four-hour scale after failing to sustain above May’s high at 0.7267 is indicating volatility contraction ahead. The ascending trendline of the above-mentioned chart pattern is placed from Thursday’s low at 0.7140 while the downward sloping trendline is plotted from Friday’s high at 0.7283.
Despite the deployment of significant offers from the market participants, aussie bulls have defended the 200-period Exponential Moving Average (EMA), which is trading mildly above 0.7150.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a 40.00-60.00 range, which bolsters the signals of consolidation ahead.
A determining move above June’s high at 0.7283 will trigger the upside break of a Symmetrical Triangle, which will infuse fresh blood into the aussie bulls for an upside move toward the April 19 low at 0.7343, followed by the round-level resistance at 0.7400.
On the flip side, aussie bulls can lose their grip if the asset drops below Thursday’s low at 0.7140, which will drag the asset towards May 26 high at 0.7110. Breach of the latter will expose the asset to more downside towards May 18 high at 0.7048.
AUD/USD four-hour chart