Australian Dollar Jumped to its Highest Point on Monday

The Australian Dollar was introduced in 1966 and is one of the most traded currencies in the world. People should keep in mind that, the Australian Dollar surged to its highest level in three years against the U.S. Dollar early Monday as progress in restraining coronavirus infections boosted sentiment for riskier assets. The Australian Dollar is being supported by demand for currencies linked to the global commodities trade due to an improving economic outlook.

Interestingly, vaccine rollouts will ease risks to the country’s economy over the year, according to ratings agency Fitch. As a reminder, Fitch decided not to change the country’s top AAA credit rating. However, the outlook is negative. 

It is worth noting that, Australia began its mass COVID-19 vaccine program as the country set to report no local cases for the third straight day, which gave the Australian Dollar a boost. 

Australian Dollar and details

Interestingly, the main trend is up according to the daily swing chart. Notably, trade through the intraday high at .7908 will signal a resumption of the uptrend. Moreover, the main trend will change to down on a move through .7724. 

People should keep in mind that, the minor change is .7724 to .7908. However, if the intraday selling pressure continues then its 50% level at .7816 will become the next downside target. 

Let’s have a look at the daily swing chart technical forecast. Importantly, the course of the AUD/USD the rest of the session on Monday will be determined by trader reaction. 

It makes sense to check the bullish scenario as well. Interestingly, a sustained move over .7869 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a test of the intraday high at .7908, followed by March 14, 2018 main top at .7916. Importantly, this level is resistance and a potential trigger point for an acceleration to the upside. 

Last but not least, let’s have a look at the bearish scenario. Interestingly, a sustained move under .7869 will signal the presence of sellers. Also, if this move creates sufficient downside momentum, we could see a test of the pivot at .7816 and a close under .7869 will form a potentially bearish closing price reversal top. However, if confirmed then look for the start of a 2 to 3-day correction.