#AUDUSD @ 0.63382 Aussie bulls are witnessing fresh demand after testing Wyckoff consolidation’s breakout. (Pivot Orderbook analysis)

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• 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 pair currently trades last at 0.63382.

The previous day high was 0.6393 while the previous day low was 0.621. The daily 38.2% Fib levels comes at 0.6323, expected to provide support. Similarly, the daily 61.8% fib level is at 0.628, expected to provide support.

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.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6347 at the time of writing. Pair opened at 0.6378 and is trading with a change of -0.49 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6373, 50 SMA 0.6639, 100 SMA @ 0.6789 and 200 SMA @ 0.701.

The previous day high was 0.6393 while the previous day low was 0.621. The daily 38.2% Fib levels comes at 0.6323, expected to provide support. Similarly, the daily 61.8% fib level is at 0.628, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6261, 0.6144, 0.6078
• Pivot resistance is noted at 0.6444, 0.651, 0.6627

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