AUD/USD Price Analysis: Auctions around the 0.6860-0.6870 demand zone

• It is difficult to ascertain a bias as the asset is hovering around the demand zone of 0.6860-0.6870.
• Declining 20-and 50-EMAs add to the downside filters.
• The RSI (14) has shifted into the bearish range of 20.00-40.00, which indicates more downside ahead.

The AUD/USD pair is displaying back-and-forth moves in a narrow range of 0.6871-0.6880 in the Asian session. The asset is declining from the past three trading sessions consecutively after surrendering the psychological support of 0.7000 on Wednesday.

On an hourly scale, the asset is hovering around the potential demand zone, which is placed in a narrow range of 0.6860-0.6870. It is critical to ascertain the further move and place a viewpoint as the asset has yet not displayed any strong movement yet.

The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6888 and 0.6913 respectively are declining sharply, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which strengthens the greenback bulls.

A decisive drop below the above-mentioned demand zone will drag the asset towards July 6 high at 0.6827, followed by July 5 low at 0.6761.

On the flip side, the break of the July 27 low at 0.6911 will drive the asset towards the psychological resistance of 0.7000. A breach of 0.7000 may open doors for aussie bulls for hitting July high at 0.7048.

AUD/USD hourly chart