AUD/USD Price Analysis: Breakout of a Bull Flag demands a re-test to near 0.7550

• Aussie bulls are firmer as the RSI (14) has shifted into a bullish range of 60.00-80.00.
• A re-test of the bullish flag formation will be a bargain buy for the market participants.
• Advancing 20- and 50-EMAs add to the upside filters.

The AUD/USD pair has witnessed a juggernaut upside after overstepping the April 4 high at 0.7557, which has sent the pair towards the north and the asset has printed a fresh nine-month high of 0.7662 on Wednesday. Aussie bulls have been in the bullish territory after hitting the March lows at 0.7165. The pair has given a breakout of its consolidation phase, which placed in a range of 0.7455-0.7541.

On a four-hour scale, AUD/USD is forming a bullish flag pattern, which signals back and forth moves after a strong run towards the north and leads to a fresh impulsive wave if consolidation breaks out decisively. Usually, a consolidation phase denotes the placement of bids by investors who didn’t take positions in the initial rally and those investors place their bids, which prefer to enter an auction after a bullish bias sets in.

The ascending 20- and 50-period Exponential Moving Averages (EMAs) at 0.7550 and 0.7514 add to the upside filters.

Meanwhile, the Relative Strength Index RSI (14) has shifted into a bullish range of 60.00-80.00 from 40.00-60.00, which indicates a firmer upside move going forward.

A re-test of the upper boundary bullish flag at 0.7541 will fetch significant bids from investors, which will send the pair towards Wednesday’s high at 0.7662, followed by the 11 June 2021 high at 0.7776.

However, the greenback bulls can regain strength if the asset drop below March 29 low at 0.7455, which will drag the asset towards March 10 high at 0.7369. Breach of the latter will expose the asset to more downside towards the round level support at 0.7300.

AUD/USD four-hour chart