- Bulls look firmer on bullish flag formation, which may scale the spot higher.
- A pullback towards 0.7255 will be a bargain bid for investors.
- AUD/USD is holding above the 50 and 150 EMAs, which add to the upside filters.
The AUD/USD pair has attracted some significant bids after breaching its narrow dimension. The major looks to reclaim Tuesday’s high at 0.7291 after a minute corrective pullback towards 0.7255.
Earlier, AUD/USD was oscillating in a narrow range of Tuesday’s high and low at 0.7237-0.7291 followed by a juggernaut rally from Monday’s low at 0.7167 to Tuesday’s high at 0.7291.
On a 15-minute scale, the major is forming a bullish flag pattern which signals a directionless move after a strong run towards the north and leads to a further upside if consolidation breaks out decisively.
Generally, a consolidation phase denotes the placement of longs by the market participants who didn’t capitalize upon the initial rally or those investors place bids at this time, which prefer to enter in an auction after a bullish bias sets in.
The asset is comfortably holding above the 50-period and 150-period Exponential Moving Averages (EMA), which add to the upside filters.
The Relative Strength Index (RSI) (14) is oscillating in a range of 40.00-60.00, which signals for a lackluster move.
For an upside, bulls may find significant bids near pullback at 0.7255, which will send the major towards Tuesday’s high at 0.7291. Breach of the latter would expose January 13 high at 0.7315.
On the flip side, bears can dictate levels if the spot slips below the 150 EMA at 0.7250 towards Tuesday’s low at 0.7237 and Monday’s average traded price at 0.7217 respectively.
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