Dollar News 2020 High Within Striking Distance, More to Go?

2020 High Within Striking Distance, More to Go?

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Australian Greenback Forecast, AUD/USD, Technical Outlook – Speaking Factors

  • Australian Greenback drives increased on upbeat market sentiment
  • AUD/USD value at multi-year highs following strong weekly achieve
  • Bearish RSI divergence since final excessive unlikely to dampen rally

The Australian greenback moved increased for a fourth consecutive week in opposition to the US Greenback. AUD/USD rose over 1% this week following an more and more optimistic financial outlook. Together with vaccine information boosting sentiment, China posted the sixth month of business income this week.

AUD/USD rallied above the 0.73 deal with on Tuesday and has moved increased since. Month-end rebalancing seemingly contributed to weak spot within the buck, additional bolstering AUD/USD. On the similar time, commerce tensions between Australia and China worsened. China introduced late within the week that it could impose duties on Australian wine imports. The Australian Greenback shrugged off the newest escalation, however the information could digest over the weekend to have a higher impression.

Regardless of the trade-related dangers, AUD/USD could push increased but because it rides upbeat optimism seen throughout international markets. To the upside, bulls will look to overhaul the September excessive at 0.7413. From there, a transfer increased will see the pair push in direction of its early 2018 highs. Momentum since breaking a neckline from a double backside sample earlier this month seems to be the trail of least resistance. For now, a prolongation upwards appears to be favored.

To the draw back, AUD/USD’s lately breached 0.73 deal with could also be an space for bulls to place up a combat if value reverses. The present RSI isn’t exhibiting power to be in an overbought vary but, however certainly RSI is signaling a bearish divergence from the early September highs. A follow-through on any pullback is unlikely and not using a shift in underlying market sentiment, nevertheless. For now, AUD/USD’s course seems to rely upon the broader sentiment within the markets, which, for now, is skewed to the upside.

AUD/USD – Each day Worth Chart

AUD/USD Price Chart

Chart created with TradingView

AUD/USD TRADING RESOURCES

— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the feedback part under or @FxWestwateron Twitter

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