AUD/USD Price Analysis: Eyes 0.7100 on Inverted H&S breakout

• Aussie bulls are confident over the breakout of an Inverted Head and Shoulder pattern.
• A bull cross, represented by 20 and 50-EMAs adds to the upside filters.
• The RSI (14) has shifted into a 60.00-80.00 range, which signals more gains ahead.

The AUD/USD pair has witnessed a minor pullback after hitting a high of 0.7072 in the New York session. Earlier, the aussie bulls displayed a firmer rally after recording a fresh yearly low of 0.6829 last week.

A breakout of an Inverted Head and Shoulder chart pattern on an hourly scale has indicated a confident bullish reversal. The formation of the above-mentioned chart pattern denotes a prolonged inventory distribution in which the institutional investors purchase inventories from the retail participants.

A bull cross of 20- and 50-period Exponential Moving Averages (EMAs) at 0.6992 indicates a firmer rally ahead.

Also, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which signals more gains going forward.

A pullback towards the 20-EMA at 0.7030 will be a bargain buy for the market participants that will send the asset towards the round level resistance at 0.7100. The occurrence of the same will drive the asset further towards May 3 high at 0.7148.

On the flip side, the greenback bulls could regain control if the asset drops below Wednesday’s low at 0.6948. This will drag the asset towards Monday’s low at 0.6872, followed by yearly lows at 0.6829.

AUD/USD hourly chart