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  • AUD/USD is having a tough time capitalizing on signs of seller exhaustion on the daily chart.
  • The post-RBA high of 0.7048 is the level to beat for the bulls.

AUD/USD is struggling to capitalize on the break above the psychological level of 0.70, despite signs of seller exhaustion technical charts.

The currency pair created a doji candle, which is widely considered a sign of seller exhaustion. The candle, however, has appeared after following the sell-off from the highs above 0.72 seen on April 17 and after the RBA’s decision to keep rates unchanged.

That doji candle, therefore, could be considered a sign of indecision among sellers (or bearish exhaustion).

Further, the daily chart relative strength index (RSI) has been sidelined around 35 since April 25 despite the lower lows on the price chart. That bearish divergence also indicates seller exhaustion.

Even so, the buyers are not willing to make their presence felt, possibly due to the US-China trade tensions.

Technically speaking, the case for a corrective bounce would strengthen if the spot finds acceptance above the post-RBA high of 0.7048.

Daily chart

Trend: Neutral

Pivot points