Home Forex Market Analysis Forex Signals AUD/USD Upward Channel Supports Buying – Dollar Getting Weaker! 

AUD/USD Upward Channel Supports Buying – Dollar Getting Weaker! 

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The AUD/USD pair was closed at 0.74414 after placing a high of 0.74493 and a low of 0.73977. The AUD/USD pair advanced to its highest since August 2018 on Thursday over the broad-based U.S. dollar weakness and the rising risk sentiment in the market. The U.S. dollar saw a massive sell-off on Thursday that led the U.S. Dollar Index to fell to its 2-years lowest level at 90.50. The latest decline in the demand for the U.S. dollar was droved by the rising hopes of a second round of stimulus package by Congress.

The second round of stimulus talks was resumed that succeeded in getting a consensus on a $908 billion bipartisan bill for coronavirus pandemic. The Democrats said that they would back the proposal as it was the starting step toward the stimulus package. These optimistic statements raised the hopes that the second round of financial aid from Congress for coronavirus pandemic will be released soon and support the economy. These hopes weighed on the U.S. dollar and supported the AUD/USD pair’s gains on Thursday. 

On the data front, at 02:30 GMT, AIG Construction Index from Australia came in as 55.3 against the previous 52.7. At 05:30 GMT, the Trade Balance from Australia surged to7.46B against the forecasted 5.83B and supported Aussie that added further gains in the AUD/USD pair on Thursday. At 17:30 GMT, the Challenger Job Cuts for the year in November came in as 45.4%against the previous 60.4%. At 18:30 GMT, the Unemployment Claims from last week declined to 712K against the predicted 775K and supported the U.S. dollar and capped further gains in AUD/USD pair. At 19:45 GMT, the Final Services PMI for November surged to 58.4 against the predicted 57.5 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI stayed as predicted 55.9. Meanwhile, the AUD/USD pair also rose to its 2-years highest level on Thursday after the Caixin Services PMI on Thursday raised to 57.8 against the expected 56.5 and supported the China-proxy Aussie. 

The risk-perceived Australian dollar also followed the risk appetite and reached above its more than 2-years highest level as the optimism in the market related to vaccine development continuously supported the quick global economic recovery. This optimism also raised hopes that soon the vaccine will circulate in the market, and the economy will return to its pre-pandemic level that would help people return to their everyday routine lives. These positive hopes kept the market sentiment higher and supported Aussie’s risk on the bullish track.


Daily Technical Levels

Support Resistance

0.7371 0.7441

0.7326 0.7466

0.7301 0.7512

Pivot point: 0.7396

Entry Price – Buy 0.7437

Stop Loss – 0.7397

Take Profit – 0.7477

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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