• Bulls look to reclaim 0.7557 despite risk-off impulse in the market.
• Overstepping of Trendline and 38.2% add to the upside filters.
• Bears can take the charge if the pair slips below 0.7275.

The AUD/USD pair has witnessed a juggernaut rally in the last few trading sessions despite a broad-based risk-off impulse in the market. The major is moving north right from the first tick of February. Now, the pair is eying to reclaim its October 28 high at 0.7557.

On a daily scale, AUD/USD has surpassed 0.7320, the 38.2% Fibonacci retracement, which is placed from the May 10 high of 0.7892 to the January 28 low at 0.6966. This indicates a bullish reversal after a strong bearish trend. The pair has also overstepped the trendline placed from May 10 high at 0.7892, which adds to the upside reversal filters.

It is worth noting that the pair made an indecisive tick on Thursday at the surface of the trendline. Usually, an indecisive tick formation near a trendline breakout indicates the importance of the respective levels. On Friday, the major has breached the indecisive tick on the upside after opening in Thursday’s value area. This indicates active participation of buyers and the pair will pick momentum swiftly.

AUD/USD has recaptured the 200-period Exponential Moving Average at 0.7300 and moving beyond the latter, with bulls in total control. 

The Relative Strength Index (RSI) (14) has shifted above 60.00 after oscillating in a range of 40.00-60.00, which points to a fresh rally going forward.

Bulls have been established in the major and further upside will be observed once the pair will violate Friday’s high at 0.7363. A breach of 0.7363 will send the pair towards 50% and 61.8% Fibonacci retracement at 0.7430 and 0.7541 respectively.

On the contrary, bulls can lose confidence if the pair slips below Thursday’s low at 0.7275. This will drag the pair towards the 100-EMA at 0.7227 and 23.6% Fibonacci retracement at 0.7186.

AUD/USD daily chart