AUD/USD Price Analysis: Fake break brings aussie bulls back inside the woods

• Fake breakdown of the descending triangle has strengthened the aussie bulls.
• The asset has captured the 50-period EMA at 0.6764 confidently.
• A decisive move above 60.00 by the RSI (14) will accelerate the odds of a bullish reversal.

The AUD/USD pair is marching towards the round-level resistance of 0.6800 after sensing a responsive buying action. The asset has rebounded firmly after hitting a low of 0.6730 in the Asian session. An escape from the fears of recapturing a two-year low at 0.6711 has strengthened the antipodean against the greenback.

A downside fake-out of the descending triangle formed on an hourly scale is indicating that the aussie bulls are not bearish for now. The downward sloping trendline of the above-mentioned chart pattern is plotted from June 16 high at 0.7070 while the horizontal support is plotted from June 1 low at 0.6763. The aussie bulls have returned to the volatility contraction pattern.

Aussie bulls have captured the 50-period Exponential Moving Average (EMA) at 0.6764, which indicates that the short-term trend is bullish now. However, the 200-EMA at 0.6802 is still higher than the prices.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting to hit 60.00 and a breach of the same will bring a bullish reversal for the counter.

Should the asset violate July 6 high at 0.6827. An occurrence of the same will drive the asset towards July 5 high at 0.6896, followed by June 30 high at 0.6920.

Alternatively, a drop below Monday’s low at 0.6713 will drag the asset towards the 29 May 2020 high at 0.6683. A breach of the latter will drag the asset towards the 30 April 2020 high at 0.6570.

AUD/USD hourly chart