AUD/USD Price Analysis: At ‘Make or Break’ to near 0.7200, 200-EMA key support

• An auction near the Rising Channel’s lower boundary has kept investors on the tenterhooks.
• The 200-EMA is advancing strongly which has kept the auss1ie bulls alive.
• A slippage in the bearish range of (20.00-40.00) by the RSI (14) has shifted the momentum on the bearish bias.

The AUD/USD pair is attracting some bids around 0.7190 despite slipping below the crucial support of 0.7190 in the Asian session. Sometimes a break below the crucial support calls for a responsive buying action if the market participants found the asset a value bet.   

Aussie bulls have been performing stronger against the greenback for the past few trading weeks on the Rising Channel formation. The upper boundary is placed from May 23 high at 0.7127 while the lower boundary is plotted from May 18 low at 0.6949. Usually, a Rising Channel chart formation denotes the dominance of the bulls in an aligned range.  

The pair has tumbled below the 50-period Exponential Moving Average (EMA) at 0.7208, which signals a short-term bearish bias. Meanwhile, the 200-EMA at 0.7175 is still advancing higher, which signals that the long-term bullish bias is still intact.

Meanwhile, the Relative Strength Index (RSI) has slipped into a bearish range of 20.00-40.00, which favors the greenback bulls.

Most probably, a responsive buying action will drive the asset higher, if the asset oversteps the round-level resistance of 0.7200 decisively. This will drive the asset higher towards Monday’s high at 0.7230, followed by June’s high at 0.7283.

On the flip side, the greenback bulls could gain momentum if the asset drops below May 31 low at 0.7150. An occurrence of the same will drag the asset towards May 23 high at 0.7127. Further slippage from May 23 high will expose the asset to May 18 high at 0.7148.

AUD/USD hourly chart