The AUD/USD continues its advance
Jason Lubin December 29, 2020 10:55 PM
Upside breakout from a short-term bearish channel.
The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, no major economic data was released.
On Wednesday, Wholesale Inventories for the November preliminary reading are expected to rise 0.6% on month, compared to +1.1% in the October final reading. Market News International's Chicago Business Barometer for December is expected to slip to 56.0 on month, from 58.2 in November. Finally, Pending Home Sales for November are expected to release unchanged, compared to -1.1% in October.
The Euro was bearish against most of its major pairs with the exception of the USD. In Europe, no major economic data was released.
The Australian dollar was bullish against most of its major pairs with the exception of the NZD and CHF.
From a chartist's point of view, on a daily chart, the AUD/USD currency pair has continued its intermediate-term uptrend after the pair broke out to the upside of a short-term bearish channel on December 24th. The 20-day simple moving average (SMA) is above the 50-day SMA, a bullish signal. The pair's next resistance levels are at 0.7675 and 0.7810. If the pair slips then traders should look to the 20-day SMA for support. If the 20-day SMA fails to support the pair, it would be a bearish signal that could send it back to 0.7455. If the decline is not halted at 0.7455, the pair could drop back to 0.7330.
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.