• 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.

AUD/USD

Overview
Today last price 0.7224
Today Daily Change -0.0024
Today Daily Change % -0.33
Today daily open 0.7248
 
Trends
Daily SMA20 0.7134
Daily SMA50 0.7284
Daily SMA100 0.7295
Daily SMA200 0.7458
 
Levels
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

 

 

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