- The greenback gains some ground against the aussie, amid closed US equity and money markets.
- Covid-19 positive news improved investors' mood as the year-end looms.
- AUD/USD Price Forecast: Bulls prepare for a challenge of crucial resistance around 0.7280-0.7300.
The AUD/USD slides during the late European trading session, down some 0.33% trading at 0.7224 at the time of writing. The market sentiment is upbeat, as shown by some European bourses that opened on Friday. However, thin liquidity conditions spurred by some financial centers closed on Christmas eve, keeping the greenback on the bid against most G8 currencies.
The week witnessed a late Santa rally spurred by positive news on the Covid-19 front. On Tuesday, a study in South Africa reported that people infected with the Omicron variant were 80% less susceptible to needing hospitalization. That, alongside the US Food and Drug Administration (FDA) approving Covid-19 treatments by Pfizer and Merck, was the last piece of the puzzle that prompted the US S&P 500 towards a new all-time high around 4700.
Those events ultimately benefitted risk-sensitive currencies in the FX market, like the AUD. The Australian dollar rallied some 150-pips since Tuesday, but as of today, a pullback towards 0.7220s appears to be a pause necessary before challenging of breaking essential resistance levels.
AUD/USD Price Forecast: Technical outlook
The AUD/USD daily chart depicts the pair has a downward bias, as the daily moving averages (DMAs) reside above the spot price. Nevertheless, the recent upside move stalled some 40-pips short of the confluence of the 50 and the 100-day moving averages (DMAs), which lie at 0.7280 and 0.7294, respectively.
In the event of breaking above the aforementioned levels, that would pave the way for further gains, exposing crucial resistance levels. The first one would be November’s 15 swing high at 0.7371, followed by 0.7400.
|Today last price||0.7224|
|Today Daily Change||-0.0024|
|Today Daily Change %||-0.33|
|Today daily open||0.7248|
|Previous Daily High||0.7253|
|Previous Daily Low||0.7196|
|Previous Weekly High||0.7225|
|Previous Weekly Low||0.709|
|Previous Monthly High||0.7537|
|Previous Monthly Low||0.7063|
|Daily Fibonacci 38.2%||0.7231|
|Daily Fibonacci 61.8%||0.7217|
|Daily Pivot Point S1||0.7211|
|Daily Pivot Point S2||0.7175|
|Daily Pivot Point S3||0.7154|
|Daily Pivot Point R1||0.7269|
|Daily Pivot Point R2||0.729|
|Daily Pivot Point R3||0.7326|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.