Title: AUD/USD Price Analysis: Bulls look to build on momentum beyond 0.6900 ahead of US CPI
9/13/2022 9:15:47 AM GMT
The AUD/USD pair attracted some downside buying near the 0.6860 area on Tuesday and turned positive for the third consecutive day. The pair is currently placed near two-week highs, with bulls awaiting a sustained move beyond the 0.6900 round-figure.
The US dollar's selling remained unstoppable throughout the first half of the European session and turned out to be the key factor acting as a tailwind for the AUD/USD pair.
However, these gains lacked follow-up buying as investors eagerly awaited the important US consumer inflation figures, due later today.
From a technical perspective, the emergence of fresh buying near the 0.6855-0.6860 confluence hurdle break point favors the prospects of further upside. The area comprises the upper end of a one-month descending channel and the 38.2% Fibonacci retracement level of the August-September drop.
This should now act as a pivotal point for intraday traders. Any subsequent pullback could be seen as a buying opportunity near the overnight swing low, around the 0.6825 area. This, in turn, will limit further losses for the AUD/USD pair near the 0.6800 round-figure, or the 23.6% Fibonacci level.
A convincing break below the latter would indicate that the corrective bounce has run out of steam and would shift the bias back in favor of bearish traders. The AUD/USD pair could then drop to 0.6730 intermediate support en route to the 0.6700 level and the YTD low, around the 0.6680 region.