Can the AUD/USD continue to rise?

The US Dollar was bullish against all of its major pairs on Monday. On the US economic data front, no major economic data was released.

On Tuesday, GDP for the third quarter third reading is expected to remain at +33.1% on quarter, in line with the third quarter second reading. The Conference Board's Consumer Confidence Index for December is expected to rise to 97.0 on month, from 96.1 in November. Finally, Existing Homes Sales for November are expected to fall to 6.70 million on month, from 6.85 million in October. 

The Euro was bullish against most of its major pairs with the exception of the JPY and USD. In Europe, the European Commission has posted preliminary readings of December Consumer Confidence Index at -13.9 (vs -17.3 expected).

The Australian dollar was bearish against most of its major pairs with the exception of the CAD and GBP.

Technically speaking, on a daily chart, the AUD/USD began a short-term downtrend on Monday after the pair dropped below Friday’s low. It appears that the pair used the 20-day simple moving average (SMA) as support. If the intermediate-term uptrend can continue then the next major targets are 0.7675 and 0.7810. If the pair retreats further, then speculators should look to the 20-day SMA for further support.  If price fails to hold above the 20-day SMA, then the next support level would be 0.7415.  

Chart analysis tracking AUD to USD with technical analysis. Published in December 2020 by FOREX.com

Source: GAIN Capital, TradingView

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