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Christopher Lewis

The Australian dollar has rallied a bit during the trading session on Monday, reaching towards the 0.7350 level again. This is an area of course that has been crucial more than once and therefore think it is worth paying attention to. With this being the case, I like the idea of fading short-term rallies that show signs of exhaustion. Ultimately, whether or not we break out remains to be seen but we certainly are trying. If we get above the 0.7350 level, the next target will be the 0.74 handle, followed by the 0.75 level.

AUD/USD Video 24.11.20

All of that being said, the Australian dollar needs much more optimism than we have at the moment, so I suspect that it will be difficult to break out. If we do, then it is possible that we could see the beginning of a big run. To the downside, I believe that the 0.7250 level continues to be supported, as it was previous resistance in of course we have seen action in this area for some time. With that being the case, I do like the idea of a move down towards that area. Ultimately, this is an area that should attract a certain amount of attention. That being the case, I think we continue to chop back and forth as we have a shortened week in the United States.

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In general, it seems as if the “risk on” appetite remains out there, and therefore I think it makes quite a bit of sense that we would continue to see upward momentum in the Aussie on pullbacks. Whether or not we get a breakout is a completely different story.

For a look at all of today’s economic events, check out our economic calendar.

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