AUD/USD Mild drop appears to have ended; bulls are optimistic over 0.6900

In the early Tokyo session, the AUD/USD exchange rate is fluctuating within a tight range of 0.6880 to 0.6892. The asset has moved sideways after a slight bounce, or it might be deemed inventory distribution following a decline from Wednesday's 0.6930 high. On a larger scale, the major is extremely bullish and has gained more than 3 percent since its two-year low of 0.6681 was recorded the previous week.

On an hourly scale, the loss of corrective momentum is evident as the asset reached a higher low while the momentum oscillator, Relative Strength Index (RSI), made a lower low. The emergence of a positive divergence will reveal an attractive buying opportunity and cause the asset to rise.

At 0.6880, the 50-period Exponential Moving Average (EMA) has provided significant support for the currency. In addition, the 200-day exponential moving average (EMA) at 0.6832 is pointing up, adding to the upside filters.

If the asset surpasses the July 10 high at 0.6900, aussie bull will restore its vigor and push the asset towards the June 28 high at 0.6965. A violation of this level will take the main currency towards the psychological barrier at 0.7000.

Conversely, a sharp decline below the round-level support of 0.6800 would encourage the dollar bulls. This may cause the pair to fall towards the bottom on July 13 of 0.6724, followed by the low on July 14 of 0.6680.