• AUD/USD may target the upper boundary of the rectangle pattern around 0.7260.
• The 14-day Relative Strength Index hovers near 52, signaling balanced momentum.
• The initial support lies at the nine-day EMA at 0.7166.

AUD/USD pares its latest losses from the previous day, trading around 0.7180 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates that the pair moves within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

The AUD/USD pair is holding a constructive near-term bias as it hovers above both the nine-day and 50-day Exponential Moving Averages (EMAs). This alignment of short- and medium-term EMAs below spot suggests underlying dip-buying interest, while the 14-day Relative Strength Index (RSI) near 52 signals balanced momentum after the recent consolidation, leaving room for a further push higher as long as price stays north of these averages.

The AUD/USD pair may explore the region around the upper boundary of the rectangle pattern around 0.7260, followed by 0.7277, the highest level seen since June 2022, recorded on May 6.

On the downside, the immediate support appears at the nine-day EMA at 0.7166, followed by the 50-day EMA at 0.7127. Further support lies at the lower boundary of the rectangle around 0.7070. Further declines would expose the four-month low of the 0.6833 region, recorded on March 30.

(The technical analysis of this story was written with the help of an AI tool.)