Looking at the chart on the weekly time frame, we see that this week’s candlestick is very bearish, but it is only the beginning of the week. We can see this as an impulse and response to the global increase in risk due to the new virus in the UK and settled countries. . Technically, this is just a pullback within a growing channel. We can ask for the first support around 0.74000, the breaking point of the previous peak. Short-term bearish scenario, and bullish is a long-term view.
On the daily time frame, we see that the AUD/USD pair is currently testing a psychological level of 0.75000, and if we see a break below, we can look for support on moving averages and the zone around 0.74000. Otherwise, we go up to 0.76000. It is best to wait until the end of the day to see how this candlestick will close and how it will open the next day.
On the four-hour time frame, we see a strong bullish moment from the beginning of November, when the AUD/USD pair made a break above the moving averages. While today we have a bullish candlestick that has fallen below MA50 and is now testing MA100 as well as a psychological level of 0.75000. With the discovery of the vaccine, the Australian dollar got the wind in its back until today, when information about the new virus and the total lockdown of Great Britain was published.
The RBA is ready to provide more cash incentives if needed. The likely tools would be in addition to a $ 100 billion quantitative easing program for Australian government bond purchases over 5 to 10 years. Negative interest rates are still considered very unlikely for Australia.
Following in the footsteps of Europe and Turkey, Canada is also stopping flights from the UK. Fears of the virus gained momentum over the weekend, as the Netherlands and Australia also marked one case each of the colored variants noticed by Britain.
Weighing the risk could also be concerned about Brexit without an agreement or a further delay in the divorce date. Policymakers from the European Union (EU) and the UK have yet to address fisheries and equality obstacles.
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