AUD/USD Price Forecast: Remains above 0.7150 to test nine-day EMA barrier

AUD/USD advances after two days of losses, trading around 0.7160 during the Asian hours on Monday. The technical analysis of the daily chart indicates that the pair moves within the rectangle pattern, suggesting a consolidation.

The AUD/USD pair is holding a modest bullish bias as it stays above the 50-period Exponential Moving Average (EMA) and marginally over the short-term nine-period EMA. This configuration suggests the pair remains underpinned by its medium-term trend, while the 14-day Relative Strength Index (RSI) near 51 hints at neutral-to-slightly positive momentum, allowing for further gains as long as price holds above these nearby dynamic supports.

The AUD/USD pair is testing the nine-day EMA barrier at 0.7161. A break above this short-term average would improve the price momentum and support the pair to approach the upper boundary of the rectangle around 0.7270, followed by 0.7277, the highest since June 2022, recorded on May 6.

On the downside, the primary support lies at the 50-day EMA of 0.7116, followed by the lower boundary of the rectangle around 0.7070. Further declines below the rectangle would put downward pressure on the AUD/USD pair to navigate the region around the four-month low of 0.6833, which was recorded on March 30.

(The technical analysis of this story was written with the help of an AI tool.)