- AUD / USD plummets during the American session, almost half a percent.
- The increase in COVID-19 cases in Eastern Europe, the Austrian lockdowns and the possibility of Germany to re-impose restrictions affected the sentiment of investors.
- AUD / USD Technical Outlook: Negative below downtrend at 0.7577 – Commerzbank.
The AUD/USD It extends its three-week slide, a 300pip drop, trading at 0.7243 during the US session at press time. In the overnight session, the Aussie tried to trim some of its weekly losses. However, it failed to break out of the robust resistance area near the R1 daily pivot point level, retracing to 0.7228, breaking support levels on the way down.
The risk-off climate in the market clouded the outlook for risk-sensitive currencies such as the AUD, NZD and GBP. In contrast, safe-haven pairs like the Japanese yen and the dollar are the day’s winners. Factors such as the peak in fourth wave COVID-19 cases in Eastern Europe, along with Germany, spurred demand for the US dollar.
Meanwhile, the US dollar index is advancing at press time, closing at 96.00, due to comments from Federal Reserve Vice Chairman Richard Clarida, which may be appropriate in December to discuss the acceleration of the gradual reduction of QE. He added that there are upward risks for inflation, that the economy is in a very strong position and that it seems that the fourth quarter is going to be very good.
AUD USD Price Forecast: Negative below downtrend at 0.7577 – Commerzbank
According to Karen Jones, head of the FICC technical analysis team at Commerzbank, the Aussie would decline towards the August low of 0.7106 on a break below 0.7250.
He added that “The failure at 0.7250 will target the September 29 low at 0.7171 and the August low at 0.7106.” In addition, he noted that “initial resistance is the, 55-day MA at 0.7348, then 0.7430 the November 9 high and the 20-day MA at 0.7409. Above here is the September 3 high of 0.7477, and we expect the market to fail in this area. ” Jones further noted that long-term bearish pressure would remain below the 0.7534 / 77 area.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
