Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

The Australian dollar has rallied a bit during the course of the week, reaching towards the 0.7350 level. This is an area that has offered resistance previously, and it is not a huge surprise that we could not break above there by the end of the week. The 200 week EMA sits below the weekly candlestick from the previous week, so that could offer a bit of a support level. If we can break above the 0.74 handle, then it is likely that we could go higher.

AUD/USD Video 23.11.20

Short-term pullbacks will continue to be bought into from what I see, extending all the way down to the 0.70 level. That being said, the RBA is likely the biggest hurdle for the Aussie dollar right now, right along with the slowing down of the global economy due to the coronavirus lockdowns. The question now is are investors looking past this time and start looking towards life after the vaccine, or are they worried about the damage between now and then?

Ultimately, pay attention to the commodity markets as they could give you a bit of a “heads up” as to where the Aussie goes longer term. That being said, I do not necessarily think that we have an easy break out right now, but the longer-term attitude certainly seems to be more to the upside. However, if we were to turn around a break down below the 0.70 level, the market is likely to fall rather hard. That being said though, I do not think it happens anytime soon and the Federal Reserve continues to loosen monetary policy going forward, keeping that all but impossible unless we get some type of economic shock.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.