AUD/USD Price Analysis: Witnesses a time correction after facing barricades around 0.7000

• A Bullish Flag formation is hinting a continuation of the upside journey.
• The asset has entered into a time correction after facing long liquidations around 0.7000.
• Aussie bulls have established above the 200-EMA firmly.

The AUD/USD pair is displaying a time correction after a perpendicular upside move to near the psychological resistance of 0.7000. Earlier, the aussie bulls witnessed a juggernaut rally after defending the weekly lows of 0.6886 on Friday.

On an hourly scale, the asset is forming a Bullish Flag chart pattern that signals a consolidation after an upside move. A typical inventory distribution phase in a bull flag is used for the initiation of longs by those investors, which prefer to enter an auction after an establishment of a bullish bias.

The antipodean is defending the 20-period Exponential Moving Average (EMA) at 0.6974. Also, the asset has managed to establish above the 200-EMA at 0.6954 confidently, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted back into the 40.00-60.00 range after failing to sustain in the bullish range of 60.00-80.00. The upside still looks favored and a breach above 60.00 will strengthen the aussie bulls further.

A decisive move above the six-week high at 0.7047 will send the major towards the round-level resistance of 0.7100, followed by May 31 high at 0.7204.

Alternatively, a downside break below Wednesday’s low at 0.6885 will drag the asset towards July 15 high at 0.6806. A slippage below July 15 low will trigger the downside risk to July 5 low at 0.6761.

AUD/USD hourly chart