AUDUSD moved into bullish mode after reversing on 2021 bottom line bearish channel at 0.6765 last Friday.

The pair nearly recouped Friday’s loss ahead of the RBA’s rate decision scheduled for Tuesday at 04:30 GMT, but the 50-period simple moving average (SMA) on the four-hour chart, which has been a key binding zone since the beginning of June, is always above to 0.6890. Note that the 23.6% Fibonacci retracement of the falling leg from 0.7282 to 0.6763 is also around the same level.

On the other hand, the rapid advance of the RSI, which is looking to break out of the bearish zone, and the growth of the MACD, which has risen above its red signal line, reinforce optimism about the possibility for the pair. to prolong its recovery in the short term. The 38.2% Fibonacci of 0.6961 may appear first in this case. A more aggressive rally could even reach the resistance of 0.6993, where a higher close could see another test near the 200-period SMA and the 50% Fibonacci of 0.7022.

In the downside scenario, where the price breaks back below the support near 0.6850, the way will clear again towards the lower boundary of the channel seen around 0.6765. Failure to bounce here could trigger a quick decline towards the 0.6565 handle taken from April to May 2020.

Overall, although the short-term bias is improving for the AUDUSD, buyers can wisely wait for a close above the familiar 0.6885 barrier before pushing the price towards 0.6961.