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AUD/USD Keeping a Bullish Stance

AUD/USD has been consolidating since mid-June, though it made another high on the year at 0.9504 at the turn of the month. In July, price has retreated from that high on the year to the 0.9320-0.9330 support area, and held. As price broke above July's falling trendline last week, we are again looking at the bullish outlook.

AUD/USD 4H Chart 7/28

Not so fast though. Price fell from 0.9475. However, we found support at 0.9383, which just barely kept the bullish stance. Note that price respected the cluster of moving averages (200-, 100-, 50-period SMAs) in the 4H chart. The RSI also held above 40 after it tagged 70 last week. These two technical developments are signs that the short-term outlook should be bullish toward the 0.9504 high.

AUD/USD Daily Chart 7/28

The daily chart should convince you to favor the bullish outlook versus a bearish one. The moving averages and the RSI are both still in bullish stance, and price is trading above the 200-, 100-, and 50-day SMAs.

A break below 0.9310 would be a sign of a price top. Otherwise, the bullish outlook should remain in focus.