September 9, 2022 12:19 AM ET
By: AnalysisWatch
The AUD/USD pair is advancing strongly after establishing itself above the critical resistance of 0.6770 during the Asian session. The asset witnessed a bullish open test session in which the bulls remained in control after defending the bearish bias from the first tick. In addition, the major broke the consolidation of the 0.6713-0.6770 area on the upside.
On an hourly basis, the Aussie bulls penetrated the previous balanced profile (placed in a range of 0.6770-0.6850), which resulted in a bearish imbalance. Investors should be aware that an entry into the previous balanced profile strengthens the chances of a bullish reversal.
The 20-and 50-period exponential moving averages (EMAs) have completed a bullish crossover at 0.6747, indicating an upward move ahead.
In addition, the Relative Strength Index (RSI) (14) has moved into the bullish 60.00–80.00 area, implying that bullish momentum has been triggered.
A minor corrective move towards the round support at 0.6800 will trigger a breakout buying opportunity for investors, which will drive the asset towards the August 29 low at 0.6841, followed by the August 31 high at 0.6904.
Alternatively, the antipode could lose momentum if the asset falls below Thursday's low of 0.6713. Such a situation would take the asset toward the March 2020 high at 0.6657 and the April 2020 high at 0.6570.
Comments