AUD/USD Price Analysis: Aussie bulls defend 50-EMA, pullback likely to near 0.7550

• The 50-EMA has acted as a barrier for the greenback bulls.
• Support taken at 40.00 by the RSI (14) indicates a consolidation ahead.
• Breakout of the flat channel is demanding a re-test for a fresh rally.

The AUD/USD pair has witnessed a bearish open test-drive session on Wednesday. The pair opened at 0.7585 and made a high at 0.7594. Later, it witnessed an intense sell-off, which dragged the asset to a low of 0.7561. Aussie bulls get cushioned after encountering the 50-period Exponential Moving Average (EMA), which is currently trading at 0.7569.

On an hourly scale, AUD/USD has recorded a strong upside after exploding the flat channel placed in a range of 0.7455-0.7546. Usually, a breakout of a consolidation pattern is followed by a re-test of the upper boundary of the chart pattern. The asset is experiencing a correction and is dropping to near the upper boundary of the flat channel at 0.7455.

The Relative Strength Index (RSI) has sensed support near 40.00, which indicates that the greenback bulls are losing momentum. Meanwhile, the 20- and 50-period Exponential Moving Averages (EMAs) at 0.7583 and 0.7569 respectively have turned flat, which signals a consolidation ahead.

A re-test of the flat channel at 0.7541 will trigger a bargain buy opportunity for the market participants, which will drive the asset towards Wednesday’s high at 0.7662. Breach of the latter will send the major towards the 11 June 2021 high at 0.7776.

On the flip side, aussie bulls may lose strength if the asset drop below March 29 low at 0.7455, which will drag the asset towards March 10 high at 0.7369, followed by the round level support at 0.7300.

AUD/USD hourly chart