AUD/USD Price Analysis: At make or break around 0.7490, near rising channel surface

• Aussie bulls are hovering around the rising channel surface.
• The RSI (14) has displayed a loud move that indicates significant control of the bulls.
• The 100 and 200-period EMAs are scaling higher, which signals more gains ahead.

The AUD/USD pair has extended its gains after overstepping the last week’s high of 0.7418 on Tuesday. In the Tokyo session, the asset is performing lackluster, hovering around Tuesday’s high at 0.7477. The pair has been performing stronger after hitting a low of 0.7165 last week.

On a four-hour scale, AUD/USD is trading in a wider-than-normal rising channel in which the upper end is placed from January 13 high at 0.7315 while the lower end is marked from January 28 low at 0.6967. Generally, a rising channel indicates back and forth moves along with a positive bias. Every pullback towards the lower end of the rising channel originates as a buying event for the market participants.

The Relative Strength Index (RSI) (14) has entered into the bullish area of 60.00-80.00, which signals the continuation of a firmer rally ahead. The oscillator is not indicating any sign of divergence and overbought. It is worth noting that the oscillator has shown a loud move (entered into a bullish range from the bearish range of 20.00-40.00 without any pullback). Usually, these louder moves indicate significant control of the bulls on the asset.

The 100 and 200-period Exponential Moving Averages (EMAs) at 0.7358 and 0.7273 respectively are scaling higher, pointing more upside ahead.

For further upside, bulls need to violate the upper end of the rising channel and breach the 1 November 2021 low at 0.7485 on the upside, which will send the pair to 29 October 2021 high at 0.7556, followed by round level resistance at 0.7600.

Should the asset slip below Monday’s low at 0.7373, aussie bulls may witness significant offers, which will drag the pair near round level support and the 20-period EMA at 0.7300 and 0.7273 respectively.

AUD/USD four-hour chart