AUD/USD Price Analysis: Tests the Wyckoff’s consolidation breakout at around 0.6300
- Aussie bulls are witnessing fresh demand after testing Wyckoff consolidation’s breakout.
- The positive market sentiment has trimmed returns on US Treasury yields.
- The 20-EMA has acted as major support for the counter.
The AUD/USD pair has attempted a rebound after dropping to near 0.6324 in the late Tokyo session as the risk-on impulse has strengthened further led by gains recorded in S&P500 futures after a solid Friday. The US dollar index (DXY) is working on establishment above 112.00, however, a cheerful risk profile could bring volatility to the counter.
Meanwhile, the 10-year US Treasury yields have dropped further to near 4.15% amid improved risk appetite. Going forward, the Australian inflation data will be of utmost importance.
On an hourly scale, the asset is testing the textbook-carbon Wyckoff’s consolidation breakout. The major rebounded firmly after Richard Wyckoff’s Spring formation which indicates the climax of the selling pressure and investors make a fresh demand, considering the asset a value buy. The Spring formed at the two-year low of 0.6170.
The responsive action from aussie bulls has turned into a breakout of the longer consolidation phase and now the upside break is testing the breakout’s edge.
The 20-period Exponential Moving Average (EMA) at 0.6340 is acting as major support for the counter.
Meanwhile, the Relative Strength Index (RSI) (14) has retraced from the bullish range of 60.00-80.00. The aussie bulls will strengthen further if the RSI (14) returns to bullish territory.
Going forward, a decisive break above Thursday’s high at 0.6356 will strengthen the aussie bulls. This will drive the asset towards October 7 high at 0.6432, followed by October 4 high at 0.6548.
On the flip side, a downside break of Thursday’s low at 0.6229 will drag the asset toward the fresh two-year low at 0.6170 and April 2020 low at 0.5991.
AUD/USD hourly chart
