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Australian Dollar Trades around the 38.2% Fibo. Level


The Australian dollar is consolidating losses from a five week high price point against the U.S. dollar. The AUD/USD currency exchange rate is trading around the 38.2 percent Fibonacci level and 0.7235 as we head into Wednesday trade session.

The Economic calendar remains quiet on Wednesday during this holiday shortened week. Australia, the United Kingdom, euro area and Canada have no top tier economic data scheduled for publication. The world’s largest economy has some macro-economic data scheduled for publication. The United States will release their monthly retail inventory numbers. The U.S. is also set to release weekly Cushing inventory numbers and their monthly housing price index (HPI).

In the absence of economic data, the sentiment linked Australian dollar will react to the fast spreading and highly contagious Omicron coronavirus pandemic (Covid-19) strain news on Wednesday. On Tuesday, Australia recorded another record surge in coronavirus cases there were 11,264 new cases. This is complicating plans to reopen their economy and different states in the Down Under are fighting over domestic border controls

Daily Australian Dollar Technical Analysis (AUD/USD)

Looking at the above daily MT 4 price chart, the Australian dollar is just above the 38.2 percent Fibonacci level. The MACD histogram also constructive for possible further gains in the AUD/USD currency exchange rate.

With that said, the fifty (50) day simple moving average lines up near 0.7270 and the one hundred (100) day simple moving average is near 0.7290. Both are capping gains. The key round number of 0.73 is just above. A daily close above 0.73 opens the door for the resistance in play at 0.7325.

On the downside, the Australian dollar has immediate support at 0.72. A sustained close below 0.72 notes a congestion zone of downside barriers near 0.7190. The AUS/USD Forex pair also notes support lining up at the September monthly low price point. This downside barrier lines up at 0.7170.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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