- The US dollar retreats across the board, favoring the rebounds of the AUD / USD.
- The pair finds support at the 20-day SMA, it has a bearish bias.
He AUD/USD it cut losses during the US session and rose to 0.7688, after falling in European time to 0.7658, the lowest level since January 4. Price action is capped on Monday for a US holiday.
The US dollar was unable to sustain gains and fell back. He DXY It approached 91.00 earlier in the day and is now trading near 90.75. Wall Street futures show mixed results after Friday’s slide, keeping the AUD / USD recovery limited.
The Chinese economic data better than expected they did not help commodity currencies earlier Monday. Market participants remain cautious ahead of Joe Biden’s inauguration, watching developments related to the stimulus package, coronavirus cases and the US Treasury market.
AUD / USD Short Term Outlook
AUD / USD is trading slightly above the 20-day moving average. A clear close below 0.7680 would point to further weaknesses in the future. He bias points to the downside in the very short term, but some consolidation seems likely before it declines again. A recovery above 0.7735 would ease the downward pressure.
The next strong support is at 0.7640, which if reached could trigger a rebound. Instead, if it breaks, a test of 0.7600 seems likely.
Technical levels
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