AUD/USD Price Analysis: Pullback towards 20-EMA looks likely

• Bulls are attempting to get well-placed above the plotted trendline from 0.7070.
• A selling climax below 0.6700 is hinting a responsive buying action structure.
• The RSI (14) is striving to shift into the bullish range of 60.00-80.00.

The AUD/USD pair has witnessed a mild correction after displaying exhaustion signals while attempting to sustain above the crucial resistance of 0.6800. The asset has recorded an intraday high of 0.6820 after carry-forwarding the positive bias of Friday.

On a four-hour scale, the aussie bulls have driven the asset above the trendline placed June 16 high at 0.7070, adjoining June 28 high at 0.6965.  A selling climax below 0.6700 last week has resulted in a responsive buying action.

AUD/USD has crossed the 20-and 50-period Exponential Moving Averages (EMAs) at 0.6778 and 0.6790 respectively, which adds to the upside filters. It is worth noting that the 50-period EMA is still higher than the 20-EMA while the asset has crossed both firmly. This indicates a strong responsive buying action after a steep downside.

The Relative Strength Index (RSI) (14) has attempted to cross 60.00 after oscillating in the 40.00-60.00 range. This has cleared that the aussie bulls need more strength to drive the asset higher.

A pullback move towards the 20-EMA at 0.6778 will allow more investors to participate in the ongoing rally. An occurrence of the same will send the major towards Monday’s high at 0.6819, followed by July 8 high at 0.6875.

On the flip side, the greenback bulls could take the charge if the asset drops below July 5 low at 0.6761 decisively. This will send the pair towards Tuesday’s low at 0.6710.  A slippage below Tuesday’s low will drag the asset towards Thursday’s low at 0.6680.

AUD/USD four-hour chart