AUD / USD is trading at its highest level since December 2018
The dollar decline after Powell and the risky part continue to fuel a further rise in the AUD / USD as we see price trading above the 0.7300 handle for the first time since December 2018 .
Price action has now crossed the February 2019 high at 0.7295 and more importantly, buyers are now looking to secure a weekly close above the 200 week MA (blue line) at 0.7253 ahead the weekend.
This will mark a more bullish breakout of the pair with additional resistance from the December 2018 high at 0.7394.
But for buyers, the technical picture is starting to get even better with a firm break above the 200 week MA shown above.
There are fears that the uptrend may be overexploited, especially with the correlation between the pair and stocks – the S&P 500 at an all time high.
But at the same time, it’s hard to argue with the technical picture, and Powell’s remarks from yesterday essentially indicate that the long-term outlook for the dollar remains bleak as the Fed is likely to hold current policy in place for many years to come. to come up. at least.