Advertisement
Canada markets closed

  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • DOW

    37,986.40
    +211.02 (+0.56%)
     

  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     

  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     

  • Bitcoin CAD

    87,803.88
    +3,531.27 (+4.19%)
     

  • CMC Crypto 200

    1,371.97
    +59.34 (+4.52%)
     

  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     

  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     

  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     

AUD/USD Forex Technical Analysis – Strengthens Over .6921, Weakens Under .6889

James Hyerczyk
·2 min read

The Australian Dollar finished lower on Friday despite a surge in demand for higher-risk assets. The Aussie finished well off its low, however, after the U.S. Dollar weakened.

Driving the price action on Friday were hopes of a potential vaccine for the novel coronavirus after Gilead Sciences Inc said additional data from a late-state study showed its antiviral remdesivir reduced the risk of death and significantly improved the conditions of severely ill COVID-19 patients.

That news helped push U.S. equities higher while dampening the appeal of the U.S. Dollar as a safe-haven asset.

On Friday, the AUD/USD settled at .6948, down 0.0016 or -0.23%.

ADVERTISEMENT

Gains were likely limited as sentiment for the Aussie continued to take a hit after coronavirus lockdown measures were reimposed in Australia’s second biggest city of Melbourne on Tuesday.

Daily AUD/USD
Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside on July 9 with the formation of a closing price reversal top. A trade through .7001 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through the nearest swing bottom at .6833.

The minor trend is also up. A trade through .6922 will change the minor trend to down. This will confirm the shift in momentum.

The first short-term range is .7065 to .6777. Its 50% level at .6921 is potential support.

The second short-term range is .6777 to .7001. Its 50% support level comes in at .6889.

Short-Term Outlook

The next major move in the AUD/USD will be determined by how investors handle the two 50% levels at .6921 and .6889.

The bullish tone is likely to remain intact if buyers can hold above .6921. A bearish tone is likely to develop if the selling is strong enough to take out the 50% level at .6889.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: