AUD/USD Price Analysis: Prepares for an impulsive rally, 0.6400 a key hurdle
- Aussie bulls are aiming to refresh three weeks’ high above 0.6410.
- The asset is completely out of the woods after a two-week range breakout.
- The RSI (14) has shifted into the bullish range of 60.00-80.00.
The AUD/USD pair has displayed topsy-turvy moves in a range of 0.6372-0.6400 in the Tokyo session. The asset is hovering around intraday’s high as the US dollar index (DXY) has slipped again below the 111.00 mark.
Meanwhile, risk impulse is mixed as S&P500 futures have witnessed losses in morning trade after a three-day buying spell. The 10-year US Treasury yields have slipped further to 4.09%.
On a four-hour scale, the asset is completely out of the woods after a breakout of the consolidation formed in a two-week range of 0.6200-0.6356. The major is hovering around the immediate hurdle of 0.6411 recorded on Monday. A small consolidation near weekly highs is acting as an inventory accumulation phase before an impulsive rally.
The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6343 and 0.6325 respectively are advancing, which indicates that the trend has shifted towards the north.
Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more gains ahead.
Going forward, a decisive break above Monday’s high at 0.6411 will strengthen the aussie bulls. This will drive the asset towards October 4 low at 0.6451, followed by October 4 high at 0.6548.
On the flip side, a downside break of Thursday’s low at 0.6229 will drag the asset toward the fresh two-year low at 0.6170 and April 2020 low at 0.5991.
AUD/USD four-hour chart
