AUD/USD Price Analysis, 31 December 2020

  • AUD/USD gained traction for the third consecutive session on Thursday amid sustained USD selling.
  • AUD/USD rose to the fresh high since April 2018 following China's NBS PMI data.
  • US stimulus, virus updates are the key issues untill the year ends.

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The AUD/USD pair edged higher through the Asian session and reclaimed the 0.7700 mark for the first time since April 2018.The pair built on the previous day's strong breakout momentum and gained some follow-through traction on the last trading day of the year.

The underlying bullish sentiment around the global equity markets continued undermining the safe-haven US dollar and benefitted the perceived riskier aussie. Strong RSI conditions, not overbought, keeps buyers hopeful at the ascending trend-line (since April 2001) which resist the price.

Having successfully breached the 32-month top of 0.770, AUD/USD is ready to challenge 2016 swing high resistance region around the 0.780 round figure mark. This level coincides with the trendline resistance . Meanwhile, any downside below December 17 top near 0.7640 can probe the bulls for a short-term.

The material has been provided by InstaForex Company - www.instaforex.com