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
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Nearly 80% of the S&P 500 constituents closed in the red on Friday, dragged by materials (-0.43%), financials (-0.38%) and energy (-0.34%) whereas defensive utilities (+0.20%), real estate (+0.15%) and communication services (+0.02%) outperformed. https://t.co/vf08Fhfvxd
  • Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine success. Learn about the three types of trading exit strategies here: https://t.co/muYkTNXH7s https://t.co/fSRW0Z8mNQ
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/RyMqsHehsY
  • RT @GunjanJS: This is pretty wild. Last year, in RECORD year for options, about 30 million contracts traded daily. This year, it’s been mo…
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCZ9dzS https://t.co/KD6mfkiCaW
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/TEoSjMpMBo
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/H9fW9ewiQd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/yLt0ldtMsV
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/ZwwuTzTeac
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/4DGXwA8vqs
Australian Dollar Technical Outlook: 2020 High Within Striking Distance, More to Go?

Australian Dollar Technical Outlook: 2020 High Within Striking Distance, More to Go?

Thomas Westwater, Contributor

Australian Dollar Forecast, AUD/USD, Technical Outlook - Talking Points

  • Australian Dollar drives higher on upbeat market sentiment
  • AUD/USD price at multi-year highs following solid weekly gain
  • Bearish RSI divergence since last high unlikely to dampen rally
Advertisement

The Australian dollar moved higher for a fourth consecutive week against the US Dollar. AUD/USD rose over 1% this week following an increasingly positive economic outlook. Along with vaccine news boosting sentiment, China posted the sixth month of industrial profits this week.

AUD/USD rallied above the 0.73 handle on Tuesday and has moved higher since. Month-end rebalancing likely contributed to weakness in the greenback, further bolstering AUD/USD. At the same time, trade tensions between Australia and China worsened. China announced late in the week that it would impose duties on Australian wine imports. The Australian Dollar shrugged off the latest escalation, but the news may digest over the weekend to have a greater impact.

Despite the trade-related risks, AUD/USD may push higher yet as it rides upbeat optimism seen across global markets. To the upside, bulls will look to overtake the September high at 0.7413. From there, a move higher will see the pair push towards its early 2018 highs. Momentum since breaking a neckline from a double bottom pattern earlier this month appears to be the path of least resistance. For now, a prolongation upwards seems to be favored.

To the downside, AUD/USD’s recently breached 0.73 handle may be an area for bulls to put up a fight if price reverses. The current RSI isn’t showing strength to be in an overbought range yet, but indeed RSI is signaling a bearish divergence from the early September highs. A follow-through on any pullback is unlikely without a shift in underlying market sentiment, however. For now, AUD/USD’s direction appears to depend on the broader sentiment in the markets, which, for now, is skewed to the upside.

AUD/USD – Daily Price 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 comments section below or @FxWestwateron Twitter

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

DISCLOSURES