Jul 26, 2022 3:01:00 AM E.T
By analysiswatch
The AUD/USD pair fluctuated in the narrow range of 0.6955-0.6966 at the start of the London session after falling from the daily high near 0.6980.
The asset witnessed a sharp decline after failing to hold above Friday's high at 0.6977. However, the uptrend has not yet turned down.
On a four-hour scale, the asset comfortably settled above the 38.2% Fibonacci retracement (which is located from the June 3 high at 0.7283 to the July 14 low at 0.6680) at 0.6920.
The underlying asset failed to kiss the 50% Fib retracement for a second time, which is located at 0.6984.
Also, the establishment above the 200-period exponential moving average (EMA) at 0.6900 adds to the upside filters. The bullish crossover, represented by the 20- and 200-period EMAs at 0.6903, indicates more gains are ahead.
In addition, the Relative Strength Index (RSI) (14) has shifted into the bullish 60.00–80.00 range, indicating continued bullish momentum going forward.
If the asset exceeds Monday's high at 0.6965, the Aussie bulls will steer the asset towards psychological resistance at 0.7000. A break of the latter would inject new life into the asset, allowing it to reach a high of 0.7069 on June 16.
On the other hand, a sharp drop below the round support at 0.6800 will boost the greenback bulls. This could see the pair fall towards the July 13 low at 0.6724, followed by the July 14 low at 0.6680.
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