Can the AUD/USD continue to rise?
Jason Lubin December 21, 2020 10:25 PM
AUD/USD is using its 20-day simple moving average as support.
The US Dollar was bullish against all of its major pairs on Monday. On the US economic data front, no major economic data was released.
On Tuesday, GDP for the third quarter third reading is expected to remain at +33.1% on quarter, in line with the third quarter second reading. The Conference Board's Consumer Confidence Index for December is expected to rise to 97.0 on month, from 96.1 in November. Finally, Existing Homes Sales for November are expected to fall to 6.70 million on month, from 6.85 million in October.
The Euro was bullish against most of its major pairs with the exception of the JPY and USD. In Europe, the European Commission has posted preliminary readings of December Consumer Confidence Index at -13.9 (vs -17.3 expected).
The Australian dollar was bearish against most of its major pairs with the exception of the CAD and GBP.
Technically speaking, on a daily chart, the AUD/USD began a short-term downtrend on Monday after the pair dropped below Friday’s low. It appears that the pair used the 20-day simple moving average (SMA) as support. If the intermediate-term uptrend can continue then the next major targets are 0.7675 and 0.7810. If the pair retreats further, then speculators should look to the 20-day SMA for further support. If price fails to hold above the 20-day SMA, then the next support level would be 0.7415.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.