Bearish Trend Dominates AUD/USD – Brace for Buy Limit
Arslan Butt • 1 min read
[[AUD/USD]] currency pair is flashing green and hitting the session’s high of 0.6889, mainly due to risk-on market sentiment in the wake of Sino-US optimism. As of writing, the AUD/USD currency pair is currently trading at 0.6875, and the bullish moves of the pair is likely to remain limited due to US market holiday.
The pair has dropped in previous sessions from the high of 0.6935 level and registered some fresh bearish trend for the 2nd-straight session on Friday, mainly due to greenback’s strength across the board.
The US dollar continues to flash green in the wake of positive economic data, which increased expectations that the United States economy will continue to grow and decreased the chances of any further easing in monetary policy by the Federal Reserve.
The recent optimism regarding the US-China phase one trade deal remained supportive of the bullish sentiment across the global equity markets and continued to give some support to perceived riskier currencies – like the Australian Dollar.
However, further bullish moves could be limited due to holidays in the US because of Martin Luther King Jr. Day and lack of relevant market-moving economic data. Therefore, it will be a good decision to wait to place any fresh bids until any fresh news comes out.
Daily Support and Resistance
Pivot Point 0.6885
AUD/USD is heading towards the support level of 0.6850, which may lead prices higher for bullish retracement until 0.6880 or 0.6900. Let’s look to stay bearish below 0.6885 today. Good luck!