Deal Made To End Shutdown, AUD/USD Technicals
Shain Vernier • 1 min read
Reports are hitting the newswires that a deal has been reached to end the U.S. government shutdown. An agreement between Senate Republicans and Democrats is said to be in order, creating a majority vote for a new spending bill. It appears that an end to the shutdown is imminent.
U.S. equities markets are responding to the news favorably. Bulls have taken over the U.S. indices, with the DJIA up over 75 points and the S&P 500 up 14. The USD is posting a moderately positive day, up slightly against the Euro, Swiss franc, and Japanese yen.
AUD/USD Technical Outlook
In last Friday’s update, I outlined a few of the key levels facing the AUD/USD for the near future. Today’s action has brought little change, with the Aussie consolidating around the .9800 handle.
It is always a good idea to be aware of “big, round numbers.” They have a tendency of acting as catalysts for participation. Given the prevailing market conditions facing the Aussie today, .9800 is the elephant in the room.
There are two key levels in the AUD/USD for the near future:
- Resistance(1): Swing High, .8038
- Support(1): 38% retracement of current bull run, .7950.
Bottom Line: The trading plan outlined for the AUD/USD in Friday’s update is still valid and will remain so until the swing high of .8038 is taken out.
Gold valuations will have a tremendous bearing on the AUD/USD, as recent correlations have been strong. If we see considerable movement in gold, expect the support and resistance levels to be tested.
As always, trade smart and for tomorrow!