Small Aircraft Instructor Pilot reported a NMAC.

Narrative

I would like to report this incident to provide more information to possibly further safety within the National Airspace. On DATE at XA:20; my flight student and I were flying in the Northeast Practice Area in Arizona; located about 1 mile northeast of Pinnacle Peak Mountain; North of Scottsdale Airport; making our way back to SDL at 3500 MSL. As we were flying the sun was positioned in a way that blocked view near the horizon. On the ADSB I had noticed there was a plane Aircraft Y; flying low; near the approach corridor into SDL; we made calls into the NE Practice area frequency asking them if they could see us; telling them we would do a right turn (in line with Right Away rules when two aircraft are head on). We did not receive any response from them; and they mirrored all our flight movements. After a while of following us; we came within less than 200 ft. of each other; head on; and they performed a climbing left turn to avoid our plane. Luckily; I had caught this mistake and performed a left turn towards Pinnacle Peak to avoid their aircraft. They had not performed the right of way standard right turn to avoid traffic and almost caused a midair collision. It is important to follow the standardized FAA rules to reduce the chance of accidents. I am reporting this to help increase overall safety and efficiency of the National Airspace System.