The Australian dollar is trading lower on Monday after posting weak performance in the previous session of its multi-week rally that was driven by hopes of a vaccine-fueled global recovery next year.
The Australian, which is a liquid indicator of risk, has rallied in recent weeks as investors opted to focus on the future prospects of a COVID-19 vaccine and the global rally in risky assets that as a result, rather than the global resurgence of infections.
At 08:12 GMT, the AUD / USD stood at 0.7413, down 0.0015 or -0.20%.
In other news, Australian job vacancies jumped for a seventh consecutive month in November as Victoria’s second most populous state emerged from its long coronavirus-induced lockdown.
Technical analysis of the daily swing chart
The main trend is up according to the daily swing chart. A trade passing through .7449 will signal a resumption of the uptrend. The main trend will go downward on a move to 0.7339.
The minor range is 0.7339 to 0.7449. Its 50% level at 0.7394 is the first bearish target.
The second minor range is 0.7255 to 0.7449. Its 50% level at 0.7352 is another area of potential support.
The third minor range is 0.7222 to 0.7449. His level of 50% at 0.7335 is an additional objective.
The short-term range is 0.6991 to 0.7449. If the main trend goes down, its 0.7220 to 0.7166 retracement area will become the main downside target area.
Daily Swing Chart Technical Forecasts
The direction of the AUD / USD on Monday will likely be determined by traders’ reaction to the first pivot at 0.7394.
Bullish scenario
A sustained move above 0.7394 will indicate the presence of buyers. If this move creates enough upside momentum, look for a new test of 0.7449. Removing this level could propel the market into the main high of July 9, 2018 at 0.7484.
Bearish scenario
Crossing the weak side of the old high at 0.7414 will be the first sign of weakness. Removing the pivot at 0.7394 will indicate that the sell is strengthening. This could trigger a break in the next support cluster at 0.7352, 0.7339 and 0.7335.
