AUD/USD Price Analysis: Inventory distribution near monthly highs, 0.7000 eyed

• Inventory distribution near monthly highs indicates aussie bulls are gearing up for more highs.
• Ascending 50- and 200- EMAs add to the upside filters.
• A violation of 60.00 by the RSI (14) will strengthen the aussie bulls.

The AUD/USD pair has carry-forwarded its back and forth move structure in the Tokyo session after remaining lackluster in New York. The asset is oscillating in a narrow range of 0.6950-0.6963 and is likely to give a decisive break ahead.

After correcting from its monthly high of 0.6977, the major has rebounded sharply and is forming an inventory distribution structure.  A formation of an above-mentioned structure near monthly highs indicates initiation of longs by the market participants who prefer to enter into an auction after the establishment of a bias.

The 50-and 200-period Exponential Moving Averages (EMAs) at 0.6952 and 0.6926 are advancing sharply, which indicates that the long-term trend is bullish.

Meanwhile, the Relative Strength Index (RSI) (14) has sifted in a 40.00-60.00 range, which signals a consolidation ahead. Also, the asset is looking for a potential trigger for a decisive move.

A decisive move above Monday’s high at 0.6965 will drive the asset towards the psychological resistance at 0.7000. A breach of the latter will infuse fresh blood and the asset may record a high of June 16 high at 0.7069.

On the flip side, a steep fall below the round-level support of 0.6800 will strengthen the greenback bulls. This may decline the pair towards July 13 low at 0.6724, followed by July 14 low at 0.6680.

AUD/USD hourly chart