Deal Made To End Shutdown, AUD/USD Technicals - Forex News by FX Leaders

Deal Made To End Shutdown, AUD/USD Technicals

Posted Monday, January 22, 2018 by
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.

AUD/USD
AUD/USD, Daily Chart

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!

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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