Australian Dollar Trades around 0.7590

Looking at the AUD/USD Forex market on the above daily MT 4 price action chart, the Australian dollar (AUD) is hovering around 0.7590 and 0.7595 as sentiment remains elevated thanks to the passage of the U.S. coronavirus fiscal aid package into law. President Donald Trump after a week long delay signed the package.   

This currency exchange rate is also trading around the short term ten (10) day simple moving average (SMA) which is another possible encouraging signal for Australian dollar bulls.

There is not a lot on the economic calendar today to influence price volatility with either the Australian or U.S. dollars. Forex trade volume is light as we are in the final trade week of 2020 and there is not a lot of economic data being released.

The U.S. Congress overturned President Donald Trump’s veto of the defense spending package. The House of Representatives, which is controlled by the Democratic Party, approved $2,000 stimulus checks for American households. The proposal now goes for a vote before the Republican (GOP) controlled Senate. The Trump administration has almost made it impossible for U.S. investors to invest in Chinese owned firms.

Daily Australian Dollar Technical Analysis (AUD/USD)

 Looking at the above AUD/USD price action chart, the relative strength index (RSI) is also looking positive and prices continue to trade in an upward slope. This is also keeping the bulls hopeful as we head into the last few trade days of the year.

With that said, a daily close above 0.7640 opens the door to challenge the next upside barrier in play at the June 2018 high price point at 0.7675. On the downside, a daily close below 0.7540 opens the door to challenge the 21 day SMA lining up at 0.7520. The three week old rising trend line in play at 0.7510 then comes into focus.

 The next layer of technical support then lines up at 0.7510 with the key round number of 0.75 then popping up on the radar.