Home Forex Market Analysis Forex Signals AUD/USD Weakens Despite the Intensifying Coronavirus (COVID-19) – Upward Channel Breakout! 

AUD/USD Weakens Despite the Intensifying Coronavirus (COVID-19) – Upward Channel Breakout! 

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During Thursday early Asian trading session, the AUD/USD currency pair successfully extended its overnight winning streak. It drew some further bids around below 0.7300 level, mainly due to the risk-on market sentiment, which underpins the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by optimism over a potential vaccine for the highly infectious coronavirus disease. 

Besides this, the upticks in the equity markets were further bolstered by the updates suggesting continuous progress of Brexit talks between the U.K. and the European Union (E.U.), which extended further support to the currency pair. Across the pond, the broad-based U.S. dollar bearish bias, triggered by the marker risk-on mood, has played its significant role in supporting the currency pair. Furthermore, the greenback declines were further bolstered by the intensifying doubts over the U.S. economic recovery in the wake of the intensified U.S. cases. 

Conversely, the long-lasting coronavirus woes throughout the world and delays in the U.S. covid stimulus package keep challenging the upbeat market sentiment, which becomes the key determinant that deposited the lid on any additional gains in the currency pair. In the meantime, the gains in the currency pair were further capped by the Weaker Aussie data, which showed that the Consumer confidence in Australia declined more than expected in November. The AUD/USD is trading at 0.7284 and consolidating in the range between 0.7275 – 0.7294.

The market trading bias has been sluggish since the day started. Hence, mixed trading could be attributed to the mixed signals concerning the coronavirus (COVID-19) and the global monetary policy moves, not to forget about the U.S. election results. Talking about positive factors, the leading vaccine producers like Pfizer and Moderna keep struggling to find the deadly virus’s best cure. In the meantime, the U.S. infectious disease expert Dr. Anthony Fauci recently boosted coronavirus (COVID-19) vaccine optimism during the latest comments. He noted that the data from a large trial of its experimental COVID-19 vaccine anywhere between “a couple of days” to “a little more than a week.”


Daily Support and Resistance

S1 0.7176

S2 0.723

S3 0.7255

Pivot Point 0.7285

R1 0.7309

R2 0.7339

R3 0.7394

The AUDUSD is trading with a bullish bias at a 0.7303 area, having crossed over an immediate resistance level of 0.7287. At the moment, this level is working as a support for the AUD/USD pair. On the higher side, resistance stays at 0.7341 and 0.7411 level today. Bullish bias seems strong over 0.7287 today. Good luck! 

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