Bulls on AUD/USD Have 0.7014 on the Radar?

The Australian versus the United States dollar currency pair seems the be under constant bullish dominance. But aren’t the bulls tired yet?

Long-term perspective
The rise that ended at the 0.7413 peak unfolded a decline that the bears put their hopes into. However, as the 0.7010 level took the role of a support area, additional downside development was limited. Furthermore, after the false piercing that the 0.6991 low highlights, the bulls had enough reasons the believe that it’s their turn.
The resulting rally posted the price just under 0.7320, an area that previously favored the bears. Nonetheless, the bullish determination led to the demise of the bearish defenses, allowing the price to climb until the 0.7639 high.
From there, the bears made a new attempt to gain ground, as they sent the price under the 0.7587 level. Nevertheless, the bulls swiftly validated 0.7453 as support, drove the price back above 0.7587, and continued the mounting until the 0.7802 high.
This time the bulls seem to take no chances and defined what appears to be the start of a consolidation phase above the 0.7744 level.
If 0.7744 is validated as support (that is, if the bears falsely pierce it), then 0.7914 is the next bullish objective.
Still, if 0.7744 becomes a resistance area, then the drop may extend until 0.7587.

Short-term perspective
The price is in an ascending trend that — as of writing — printed the 0.7820 high.
From the high, the price seems to develop a consolidation phase that rested on the 0.7742 support.
As the price fell under the 0.7742 level, two scenarios are possible. In the first one, the bulls may continue the movement toward the north, eyeing 0.7883, after they get the price back above 0.7742, thus forming an angled rectangle.
In the second scenario, 0.7742 is validated as resistance, allowing the price to fall until 0.7667. This would delay further bullish advancement or even set the path for a sustained decline.

Levels to keep an eye on:

D1: 0.7744 0.7914 0.7587
H4: 0.7742 0.7883 0.7667

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Original from: www.earnforex.com