0.6900 looks possible as Aussie bulls are in action

  • November 15, 2022
  • AUDUSD remains lackluster following the footprints of the DXY.
  • Bulls are hopeful of a break above the supply zone placed in a 0.6702-0.6751.
  • Advancing 20-and 50-EMAs add to the upside filters.

The AUDUSD pair is displaying a lackluster performance in the Asian session despite the release of the Reserve Bank of Australia (RBA) monetary policy minutes to provide detailed reasoning behind hiking interest rates by 25 basis points (bps) in November’s monetary policy meeting.

Also, the US dollar index (DXY) is witnessing back-and-forth moves amid a quiet market mood. The DXY is struggling to surpass the immediate hurdle of 107.00. A minor recovery in the 10-year US Treasury yields to 3.88% has been recorded.

On a four-hour scale, the asset is struggling to cross the demand zone placed in a narrow range of 0.6702-0.6751. The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6642 and 0.6550 respectively are sloping north, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more weakness ahead.

Should the asset overstep the above-mentioned demand zone decisively, room for extra gains will get uncovered. The pair will march towards September 2 high at 0.6814, followed by the critical resistance placed from September 13 high around 0.6900.

On the flip side, the greenback bulls will regain strength if the asset drops below Thursday’s low at 0.6387. This will drag the pair towards October 14 high at 0.6324 and November 3 low at 0.6272.

AUDUSD four-hour chart