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.

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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/5fpiYso1Cd
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Germany 30 are at opposite extremes with 65.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ZRDJ40Pm7N
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.71% Silver: 0.20% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zqmOlNxmzC
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.13% 🇨🇦CAD: -0.01% 🇪🇺EUR: -0.05% 🇦🇺AUD: -0.08% 🇨🇭CHF: -0.09% 🇬🇧GBP: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0T6Gdfci9d
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.41% France 40: 0.99% FTSE 100: 0.54% Wall Street: -0.06% US 500: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/9YQNC5TRy0
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-26
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:https://t.co/TMcbMALtbw https://t.co/gEojx3lvZH
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/dWaWQ0MK1V https://t.co/GIR5NQK5G7
  • Italian PM Conte confirms to cabinet that he is resigning - government source https://t.co/tYi5sjp79w
  • BoJ's Kuroda says monetary policy does have some limits in trying to achieve inflation target $JPY
Australian Dollar Forecast: Key AUD/USD Levels to Watch, Breakdown Ahead

Australian Dollar Forecast: Key AUD/USD Levels to Watch, Breakdown Ahead

Justin McQueen, Analyst

Australian Dollar Analysis and Talking Points

  • AUD/USD | Vulnerable to the Downside
  • Australian Dollar Rallies Offer Attractive Pullbacks
  • Break of 0.6000 Could Extend Move Towards 0.5800

AUD/USD | Vulnerable to the Downside

Throughout the week, we had been signalling that the recent surge in equity markets had been nothing more than a bear market rally, which is typically common following a plethora of stimulus measures. Alongside this, equity inflows in the run up to month and quarter end portfolio rebalancing had also provided support. However, with this now out the way, we see risks remain skewed to the downside in the coming weeks with the potential for equities to retest the lows. As such, the Australian Dollar is likely to remain vulnerable in the short run with rallies in the currency offering attractive levels for pullbacks.

AUD/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% 4% 4%
Weekly -7% 5% -1%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

Australian Dollar Technical Outlook

Once again, AUD/USD has topped out at 0.6200, which in turn puts pressure back on the 0.6000 handle with a closing break below raising the risk of move towards 0.5800. Keep in mind, that when equity markets are selling off, the Australian Dollar is among the primary underperformers in currency markets, particularly against the US Dollar and Japanese Yen.

Implied Weekly range (0.5850-0.6200)

Support

Resistance

0.6004

Oct’08 Low

0.6200

-

0.5950

-

0.6271

76.4% Fib

0.5786

23.6% Fib

0.6300

-

AUD/USD Price Chart: Daily Time Frame

Australian Dollar Forecast: Key AUD/USD Levels to Watch, Breakdown Ahead

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES