- AUD / USD fails to break the resistance at 0.7340 and dips below 0.7300.
- The Australian dollar has lost momentum due to risk appetite.
- The short-term bias remains positive while above 0.7260.
The australian dollar it has failed to break through a major resistance zone at 0.7340 for the second time this month. However, the next reversal has been contained just below 0.7300 and the short-term bias remains positive.
The aussie sinks as market sentiment deteriorates
The risk-sensitive AUD has lost traction on Tuesday. Monday’s enthusiasm for Moderna’s successful COVID-19 vaccine trials has been offset by fears about the introduction of more stringent restrictions as the number of infections and deaths continues to rise in the US and Europe.
The bad mood of the market has caused big falls in the stock markets. The main European indices have seen falls of between 0.45% and 0.85%, while on Wall Street the Dow Jones index lost 0.45%, with the S&P index down 0.2 and the Nasdaq index practically flat.
AUD / USD remains biased to the upside while above 0.7260
From a technical point of view, the Aussie continues to trade within a short-term uptrend, while above trend line support from the lows on November 2, now around 0.7260. A further reversal below here, could lead to a test of the 0.7220 low and then the 50 and 100 day SMAS at 07175 and 0.7150.
On the upside, the pair should break above 0.7340 (September 16, November 9 highs) to retest the long-term highs at 0.7415. Once above, the next area of relevance would be the July 2018 high at 0.7480.
Technical levels
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