AUD/USD PRICE OUTLOOK: AUSTRALIAN DOLLAR SUPPORT IN SIGHT, BUT AUSSIE SELLING PRESSURE COULD SUSTAIN AS MARKET VOLATILITY BUILDSA
AUD/USD PRICE OUTLOOK: AUSTRALIAN DOLLAR SUPPORT IN SIGHT, BUT AUSSIE SELLING PRESSURE COULD SUSTAIN AS MARKET VOLATILITY BUILDS
- AUD/USD oscillated on Thursday in a 56-pip buying and selling vary solely to shut barely decrease
- Australian Greenback bulls seek for assist as spot costs drop to contemporary two-month lows
- The Aussie may fall additional in opposition to its US Greenback peer amid rising market volatility
AUD/USD worth motion fluctuated with the ebb and circulate of standard inventory indices on Thursday. The sentiment-linked main forex pair dropped to contemporary two-month lows early on as danger aversion ramped headed into the New York opening bell, however as buying and selling progressed, crucial technical ranges held and market sentiment subsequently improved.
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AUD/USD PRICE CHART: DAILY TIME FRAME (29 APR TO 24 SEP 2020)
This facilitated a pullback within the safe-haven US Greenback and a rebound by spot AUD/USD off the 0.7020-price degree. The Australian Greenback clawed again most of its losses to shut almost flat on the day after bouncing off this space of technical assist, which can also be underpinned by the 38.2% Fibonacci retracement of the Might to August bullish leg.
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AUD/USD PRICE CHART: WEEKLY TIME FRAME (JUL 2018 TO SEP 2020)
Latest AUD/USD promoting strain may begin to subside right here with the 0.7000-handle shut by as Australian Greenback bulls try to face their floor round this confluent zone. We beforehand highlighted this assist degree as a possible draw back goal following a breakdown of the 0.7200-price degree earlier this week.
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AUD/USD PRICE CHART WITH VIX INDEX OVERLAID: DAILY TIME FRAME (DEC 2019 TO SEP 2020)
Chart created by @RichDvorakFX with TradingView
Potential for an Aussie reduction bounce may develop extra doubtless if Thursday’s restoration in danger urge for food continues into Friday’s buying and selling session. This brings to say month-end and quarter-end rebalancing flows proper across the nook, which may unwind a few of the latest promoting throughout danger property. That mentioned, the pro-risk Australian Greenback may resume its slide if the S&P 500 VIX Index, or fear-gauge, retains snapping greater amid resurgent volatility and deteriorating market sentiment.
| Change in | Longs | Shorts | OI |
| Each day | 1% | -2% | 0% |
| Weekly | 13% | -21% | -7% |
Preserve Studying – USD Value Outlook: US Greenback Ripping Increased as Markets Swoon
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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