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AUD/USD Violating Symmetric Triangle Pattern - Good Sell Ahead!

EagleFX

The AUD/USD closed at 0.68659 after placing a high of 0.68905 and a low of 0.68413. Overall the movement of AUD/USD pair remained flat but slightly bullish throughout the day. The risk perceived Aussie gained in the improving risk sentiment of the market on Monday after the Chinese coronavirus vaccine was approved by the Chinese military to use amongst its ranks that has been acquired by its research unit and biotech firm.

The vaccine was jointly developed by CanSino and the Beijing Institute of Biotechnology, part of the Academy of Military Medical Sciences. The Commission approved the vaccine on 25th June for one year.

This news raised risk sentiment in the market and gave strength to the risk perceived Australian Dollar on Monday, which helped AUD/USD pair to post gains on the day.

Furthermore, Scott Morrison, the Australian Prime Minister, was concerned on Monday that people were refusing to go back to work because their unemployment benefits were too generous. The unemployment benefits due to coronavirus crisis were doubled until the end of September in Australia that, according to PM Scott Morrison, was weighing on the job industry.

The Aussie currency was supported by Scott Morrison's comment that the country was reopening the state borders despite a sharp rise in the coronavirus outbreak in the second most populous state of Victoria. He decided to open the edge as it would help increase job growth.

On the other hand, the US dollar was intense due to positive economic data on Monday about Pending Home Sales, which increased to 44.8% from 18.9% and supported the US dollar, which kept a lid on additional gains in AUD/USD dollar pair.


Daily Technical Levels

Support Resistance

0.6840 0.6891

0.6815 0.6917

0.6789 0.6943

Pivot point: 0.6886

The AUD/USD is peaking out of the symmetric triangle pattern which was

keeping the pair supported above 0.6850 level, along with a resistance level around 0.6900 and 0.6980. Blow 0.6980; we may see Aussie dollar falling towards 0.6800 support, While the bullish breakout of 0.6900 level can extend buying until 0.6979 level. The 50 EMA is neutral as the candles are tossing above and below this level, keeping it under pressure. Consider taking buy above 0.6867 and sell below the same today. Good luck!

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