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AUD/USD Extends Symmetric Triangle Pattern - Traders Awaits Breakout! 


The AUD/USD pair was closed at 0.68830 after placing a high of0.69224 and a low of 0.68519. Overall the movement of AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day's losses amid risk-off market sentiment on the back of increased fears of coronavirus outbreak 2.0.

The number of appearing cases from Beijing and many states of America raised fears amongst investors for the second wave of coronavirus. This was then further bolstered by the renewed lockdown restrictions imposed in Beijing to control the virus spread. It weighed on the optimism about the V-shaped economic recovery of the world, so risk-off market sentiment emerged. The risk perceived currency – Aussie suffered from the decreased risk appetite and dragged the AUD/USD pair with itself on Wednesday.

The pair extended its losses for the second day based on risk-off market sentiment triggered by the increased tensions between China & India and North & South Korea. The U.S. dollar Index was high on Wednesday at 97.35 and weighed on AUD/USD pair. The MI Leading Index from Australia came in as 0.2%in May in comparison to -1.5% 0f April. At 19:30 GMT, the C.B. Leading Index from Australia came in as 0.9% in May in comparison to April's -0.2%.

On the U.S. dollar front, the Building Permits for May were released at 17:30 GMT as 1.22M as expected. The Housing Starts for ay however, came in as 0.97M against the expected 1.1M and weighed on the U.S. dollar.

The escalating tension of China with India and ongoing tussles with Australia and the U.S. weighed on A China-proxy Aussie also, and AUD/USD pair suffered on Wednesday. The comments of Federal Reserve Chairman also weighed on risk perceived Aussie when provided a gloomy outlook for global economic recovery.

Daily Technical Levels

Support resistance

0.6849 0.6920

0.6814 0.6958

0.6777 0.6992

Pivot Point: 0.6886

On Thursday, the AUD/USD is holding below a strong resistance area of 0.6900, trading mostly sideways within a tight trading range of 0.6910 - 0.6850. Traders are still waiting for a breakout, which may extend the selling trend until 0.6788. While in case of a bullish breakout, the Aussie can go higher to 0.6978 against the U.S. dollar. Fellas' odds of breakout remain high during the U.S. session on the back of positive or negative U.S. Jobless claims figures. The leading technical indicator RSI is still holding in a neutral zone, tossing above and below 50 and supporting indecision among traders. Let's keep a closer eye on the AUD/USD pair to capture a quick breakout below 0.6850 and above 0.6915. Good luck!

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