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AUD/USD Upward Channel Continues to Dominate the Market 

EagleFX

The AUD/USD pair was closed at 0.66557 after placing a high of 0.66750 and a low of 0.65371. Overall the movement of the AUD/USD pair remained strongly bullish throughout the day. The AUD/USD pair on Tuesday rose above 0.667 level and posted a multi-week high since 9 March amid the risk-on market sentiment. The selling pressure of the US dollar and the risk appetite helped Aussie find support in the market.

The USD sell-off was due to the United States' poor economic data about Consumer Confidence from the Conference Board. The data revealed that consumer confidence in the US economy was decreased by 86.6 against the expected 87.1 and weighed on the US dollar. The Housing Price Index from the US for March also declined to 0.1% from the forecasted 0.6% and added to the US dollar's weakness.

The broad-based US dollar weakness added to Aussie's upward trend on Tuesday to post a multi-week high level. The US dollar index that measures the US dollar value against the basket of six currencies was down 0.78% at 99.02. The coronavirus's possible vaccine from Merck & Co. was reported on Tuesday, which also added in the risk appetite in the market. Along with the potential vaccine news, the disturbed geopolitical situation also added to the risk sentiment.

US-China relations were disturbed when China passes a new security law to be enforced in Hong Kong. In response to this, Trump warned China that he would take action as protests against new law loom. Aussie enjoyed the risk appetite and surged to its highest level since 9 March on Tuesday at 0.66750.


Daily Technical Levels

Support Resistance

0.6568 0.6708

0.6482 0.6762

0.6428 0.6848

Pivot Point: 0.6622

The AUD/USD upward channel continues to play as it's priced soars from 0.6618 level to 0.6695 area. The AUD/USD bullish trend continuation seems to halt as traders take a breather below 0.6672 area. Closing of candles below 0.6672 area re suggesting indecision among investors regarding the continuation of further buying in the Aussie. On the lower side, the Aussie may find support around 0.6615 level, and below this, the next support is expected to be found around 0.6580 level. Good luck!

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