The chance-on strikes throughout the board continued in a single day and the majors, specifically, stay robust.
The AUD/USD has seen extra upside to start out the buying and selling week and is now on the verge of testing 0.7800. This stage is about as excessive as we now have seen in 12 months after the large COVID sell-off and subsequent rebound.
As soon as once more, it stays the weak spot within the USD that’s actually on the coronary heart of those strikes greater. That mentioned, we’re additionally seeing continued upside within the likes of fairness markets throughout the globe. Curiously, we’re additionally seeing valuable metals stay tender though the USD is falling.
I’m nonetheless considerably cautious in the mean time and that goes for all threat belongings. I actually really feel that that is the calm earlier than the storm and we might see a really sharp reversal.
The primary check for the AUD/USD will, after all, be the 0.7800 stage, to see if it could in truth maintain up OK.
0.7770 and 0.7720 are the following two swing lows that if taken out, would point out a reversal of pattern. 0.7700 shall be a stage of curiosity, however I think we might see value pullback to 0.7600 in a rush.
To the upside, we merely must see if 0.7800 can maintain up as we haven’t even examined it simply but. Proceed to observe the USD and in addition how shares open up for the week. We’ve seen the ES futures constructive for 2 days now which remains to be a really bullish indicator.
We even have the Aussie jobs knowledge out later this week, which shall be an indicator of sentiment and will shake issues up a bit.
