AUD/USD Price Analysis: A test of sacred 61.8% Fibo at 0.7050 looks imminent

• A break of the consolidation formed in a 0.6869-0.7047 range strengthened the aussie bulls.
• An establishment above 61.8% Fibo retracement adds to the upside filters.
• Advancing 20-and 200-EMAs signal more gains ahead.

The AUD/USD pair has declined gradually below 0.7100 after printing a high of 0.7135 on Thursday. The asset has tumbled after sensing exhaustion in the upside momentum. However, that doesn’t warrant a bearish reversal for now but a corrective move, which is healthy for a decent uptrend.

On a four-hour scale, the asset has given an upside break of the consolidation formed in a broader range of 0.6869-0.7047, which has strengthened the aussie bulls. Also, the asset is auctioning above the 61.8% Fibonacci retracement (which is placed from June 3 high at 0.7283 to July 14 low at 0.6681) at 0.7054. For resuming an upside journey, a test of 61.8% Fibo is critical for the aussie bulls.

The 20-and 200-period Exponential Moving Averages (EMAs) at 0.7052 and 0.6950 respectively are advancing sharply, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is established in the bullish range of 60.00-80.00, which signals a continuation of upside momentum.

A pullback near 61.8% Fibo retracement at 0.7054 will drive the asset towards Thursday’s high at 0.7137.  A latter breach will expose the asset for more upside towards 78.6% Fibo at 0.7156.

Alternatively, a drop below Wednesday’s low at 0.6951 will drag the asset towards the previous week’s low at 0.6869, followed by 23.6% Fibo retracement at 0.6824.

AUD/USD Price Analysis