AUD/USD Price Forecast: Stays above 0.7150, tests nine-day EMA barrier
AUD/USD loses ground after registering over 0.5% gains in the previous day, trading around 0.7160 during the European hours on Tuesday. The technical analysis of the daily chart indicates that the pair moves within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.
The AUD/USD pair is sandwiched between its short-term and medium-term trend references, sitting just under the nine-day Exponential Moving Average (EMA) while holding above the 50-day EMA, which leaves the near-term tone broadly neutral.
The 14-day Relative Strength Index (RSI) around 50 suggests directionless momentum after the recent pullback from overbought territory, hinting at consolidation rather than an immediate trend extension.
The AUD/USD pair is currently testing an immediate barrier at its nine-day Exponential Moving Average (EMA) of 0.7163. A successful breakout above this short-term average is expected to boost upward price momentum. This potential strength could support the pair as it climbs toward the upper boundary of its current rectangle pattern around 0.7270, with the next major target being 0.7277, a peak recorded on May 6 and the highest level seen since June 2022.
Conversely, if the AUD/USD pair faces rejection, the downside risks could push the pair back toward its 50-day EMA at 0.7118. A break below this support level would likely see the pair test the lower boundary of the rectangle formation near 0.7080. If selling pressure intensifies and forces a breakout below this consolidation zone, it could drag the pair down toward the 0.6833 region, marking a return to the four-month low, recorded on March 30.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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