AUD/USD Price Analysis: Significant correction unfolds
- AUD/USD bulls have moved in at the start of the week, price correcting the daily bear trend.
- Bulls eye 0.7170 old daily support and 50% mean-reversion targets.
AUD/USD has found solace in world leaders who are sounding optimistic that they can deal with the Omicron variant. As such, it has done little to impact Fed tightening expectations so far which is supporting the greenback.
However, sentiment in markets has been helped by the WHO; while urging caution, the organization noted that symptoms linked to the new strain so far have been mild. This gives the Aussie a much-needed boost as well. Additionally, Moderna added to the positive sentiment by predicting it would have a modified vaccine ready by early 2022.
On the charts, the outlook is bullish in so far that a correction would be expected so long as the price remains above water and 0.7100.
On a break of 0.71, other hand, then bears would be expected to pile in towards 0.7030 weekly structure.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
