The AUD/USD pair experienced low levels in the previous week. The trend resumes this week, while most retail investors take off preparing for 2022.
With no primary economic data expected, the focus will stay on the continuing trends in coronavirus cases. Recent data shows that new coronavirus cases are growing in Australia and the United States. In the US, new cases on Christmas day exceeded 206k.
The same trend is persisting in Australia. For example, the number of new cases in New South Wales increased to a record high during the Christmas weekend. In the meantime, the number of hospitalizations and death cases is moderately low. This trend proves last week’s statements revealing that the Omicron variant was moderately milder than the other covid variants.
Thus, these numbers indicate that the Federal Reserve and the Reserve Bank of Australia will carry a relatively hawkish sentiment in the next year. At the same time, experts don’t expect these two countries to enforce more lockdowns. In the meantime, analysts expect the AUD/USD pair to have little action today.
Australia will be on holiday while many American traders will persist in the Christmas spirit. Still, these minor volume conditions could lead to substantial volatility.
AUD/USD Forecast
The AUD/USD pair has been bullish in the past couple of weeks. It managed to move from its low in the first week of December to 0.7251. This represented a 3.4% increase. The pair approached the 51% Fibonacci retracement level on the four-hour chart.
It has moved above the 50-day and 25-day moving averages. The current level is essential since it was its highest level on December 15th.
As a result, the pair will probably stay in a close range today because of the low volume. At the same time, the overall trend seems bullish, with the following key level to watch being at 0.7301.
Interested in Forex Trading? Read WiBestBroker’s comprehensive SagaTrade Review.
COMMENTS