AUD/USD Price Analysis: Establishes above 50-EMA for a fresh rally, 0.7000 eyed

• Aussie bulls look comfortable after establishing above the 50-EMA at 0.6894.
• The RSI (14) needs to shift into the bullish territory of 60.00-80.00 for a fresh rally.
• AUD/USD is marching towards the psychological resistance of 0.7000.

The AUD/USD pair is displaying a balanced profile after a meaningful pullback from Monday’s low near 0.6840. The asset is indicating signs of a squeeze in volatility amid a consolidation phase after failing to overstep the immediate hurdle of 0.6920.

On an hourly scale, the asset is hovering around the 38.2% Fibonacci retracement (placed from Aug 26 high at 0.7009 to Aug 29 low at 0.6841) at 0.6905. Earlier, the asset faced barricades around 50% Fibo retracement, which is placed near 0.6925.

The establishment of the asset above the 50-period Exponential Moving Average (EMA) at 0.6894, is bolstering conviction signs for a sheer upside ahead. However, the 20-EMA near 0.6903 is overlapping with the asset, which indicates a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates that the asset is awaiting a potential trigger for further upside.

For more upside, a decisive move above 100-EMA at 0.6915 will drive the asset towards 61.8% Fibo retracement at 0.6945, followed by Aug 26 high at 0.7009.

Alternatively, a decline below 23.6% Fibo retracement near 0.6880 will drag the asset towards Aug 29 low at 0.6841. A downside move below the latter may drag the asset towards the round-level support at 0.6800.

AUD/USD hourly chart