News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
Australian Dollar Forecast: AUD/USD Looks to Extend Gains Above 0.74

Australian Dollar Forecast: AUD/USD Looks to Extend Gains Above 0.74

Peter Hanks, Strategist

Australian Dollar (AUD/USD) Price Outlook:

Australian Dollar Forecast: AUD/USD Looks to Extend Gains Above 0.74

The Australian Dollar has been a beneficiary of the global economic recovery that has taken place over the last two quarters. On the other hand, the US Dollar, particularly in recent weeks, has faltered and helped fuel gains in a variety pairs and some commodities. As a consequence, AUD/USD surged from 0.7000 in early November to 0.7450 earlier this week.

AUD/USD Price Chart: 4 – Hour Time Frame (June 2020 – December 2020)

australian dollar price chart

Even as many of the same fundamental forces continue to pressure the pair, progress has slowed and resistance looms overhead. Already, AUD/USD has stalled just south of 0.7450 which coincides with a series of highs dating back to June and July 2018. The Australian Dollar’s inability to push higher does not rule out further gains, especially given the rate is at it highest point since the Summer of 2018.

That being said, nearby resistance could give rise to shorter-term pullbacks that would allow AUD/USD to consolidate before continuing higher in accordance with the longer-term trend. Initial support is rather sparse apart from the lower-bound of an ascending channel and possible horizontal support near 0.7395. As a result, losses could accelerate if the levels are pierced and the next area of notable support may not exist until 0.7340 or 0.7244.

Either way, IG client sentiment data reveals retail traders remain overwhelmingly short AUD/USD. The number of traders net-long is 19.83% higher than yesterday and 7.34% higher from last week, while the number of traders net-short is 3.19% lower than yesterday and 3.94% lower from last week. Since we typically take a contrarian view to crowd sentiment, this may mean AUD/USD could continue to rise in the weeks ahead. Still, there is nearby resistance to negotiate before further gains can be tapped. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES