AUD/USD Price Analysis: Mild correction seems over, bulls are hopeful above 0.6900

• Positive Divergence enables a bargain buy that would be actionable above 0.6900.
• The 50-period EMA has acted as major support for the counter.
• Advancing 200-EMA adds to the upside filters.

The AUD/USD pair is displaying back and forth moves in a narrow range of 0.6880-0.6892 in the early Tokyo session. The asset has turned sideways after a modest rebound or it could also be considered an inventory distribution after a downside move from Wednesday’s high at 0.6930. On a broader note, the major is highly positive and has added more than 3% gains from its two-year low of 0.6681, recorded last week.

Loss of corrective momentum is visible on an hourly scale as the asset made a higher low while the momentum oscillator, Relative Strength Index (RSI) (14) made a lower low. The formation of a positive divergence will unfold a bargain buy and will drive the asset higher.

The 50-period Exponential Moving Average (EMA) at 0.6880 has acted as major support for the counter. Also, the 200-EMA at 0.6832 is aiming higher, which adds to the upside filters.

Should the asset overstep July 10 high at 0.6900, aussie bull will regain its mojo and will drive the asset towards June 28 high at 0.6965. A breach of the latter will send the major towards the psychological resistance at 0.7000.

On the flip side, a steep fall below the round-level support of 0.6800 will strengthen the greenback bulls. This may decline the pair towards July 13 low at 0.6724, followed by July 14 low at 0.6680.

AUD/USD hourly chart