Title: AUD/USD Price Analysis: Strikes two-day old resistance around 0.6550, upside seems favored

October 6, 2022 01:35 AM ET

By: AnalysisWatch

The AUD/USD currency pair has been surging since the first tick as market participants' risk appetite has improved. The asset has reached its Tuesday high at around 0.6547 and is expected to surpass it with sheer confidence as commodity-linked currencies have hogged the spotlight.

A seven-day consolidation on the hourly scale after recording a fresh two-year low at 0.6363 suggests a bullish reversal is imminent. The asset has a balanced auction profile within a range of 0.6390-0.6547.

Going forward, the chartered range will be marked as the most auctioned range.

The Aussie bulls have pushed the value above the 50- and 200-period EMAs (Exponential Moving Averages) at 0.6492 and 0.6508, reinforcing the upside filters. The formation of a golden cross represented by the bullish crossing of the 50- and 200-period EMAs will further strengthen the Aussie bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted its oscillation range from 40.00–60.00 to 60.00–80.00, suggesting that upside momentum has been triggered.

A break above Tuesday's high at 0.6547 will drive it towards its September 22 high at 0.6670 and its September 18 high at 0.6734.

A drop below the two-year low at 0.6363 will drag the value towards the April 16 low at 0.6264, followed by the round support at 0.6100.