The AUD/USD continues its advance
Jason Lubin December 29, 2020 5:55 PM
Upside breakout from a short-term bearish channel.
The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, no major economic data was released.
On Wednesday, Wholesale Inventories for the November preliminary reading are expected to rise 0.6% on month, compared to +1.1% in the October final reading. Market News International's Chicago Business Barometer for December is expected to slip to 56.0 on month, from 58.2 in November. Finally, Pending Home Sales for November are expected to release unchanged, compared to -1.1% in October.
The Euro was bearish against most of its major pairs with the exception of the USD. In Europe, no major economic data was released.
The Australian dollar was bullish against most of its major pairs with the exception of the NZD and CHF.
From a chartist's point of view, on a daily chart, the AUD/USD currency pair has continued its intermediate-term uptrend after the pair broke out to the upside of a short-term bearish channel on December 24th. The 20-day simple moving average (SMA) is above the 50-day SMA, a bullish signal. The pair's next resistance levels are at 0.7675 and 0.7810. If the pair slips then traders should look to the 20-day SMA for support. If the 20-day SMA fails to support the pair, it would be a bearish signal that could send it back to 0.7455. If the decline is not halted at 0.7455, the pair could drop back to 0.7330.
Source: GAIN Capital, TradingView
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