HotForex Analysis Team
HotForex
AUD/USD, H4
The current market is clearly influenced by the sentiment regarding Covid-19. The market could collapse if the number of cases and deaths in the United States increases in the second wave, but is likely to soar again when positive news about Covid-19 vaccine research shows a ray of light. These two issues have continued to plague the market since March 2020 and will remain the theme of commodity and currency movements that are closely related to the current sentiment.
AUDUSD recorded a rise yesterday and continued to strengthen today after the fall on Monday. Positive news on vaccine studies by Moderna and the United States National Institutes of Health reports that the human immune system has been successfully replicated through their experiments and it is expected that 30,000 human trials will be conducted in the near future.
AUDUSD soared in the Asian session by reaching 0.7016. The highest level in July. It is currently declining slightly and is in the key psychological area of 0.7000. The closest resistance level is at 0.7063 which is the highest level after the market fall last March, while the nearest support is currently at 0.6920. The triangular formation (Triangle Pattern) that is formed is also currently being tested at its upper level. MA-50 and MA-200 show an upward movement tendency. While RSI-14 shows momentum is now approaching the overbought zone.
Australia will report its labor data on Thursday. It will be the next catalyst for the movement of the AUDUSD currency pair.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
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