The AUD/USD has continued to incrementally add value and it is testing short- and mid-term highs in the midst of the holiday season.
The AUD/USD has been able to sustain its highs above the 0.72000 level for a few days of trading in a row. Taking into account the holiday season and the fact that transactional volumes are extremely low, technical information about short and mid-term highs being challenged could be brushed aside. However, the recent move of the AUD/USD may be more than wishful thinking for bullish speculators who are feeling optimistic about the trend which has emerged.
As of this writing, the AUD/USD is trading near the 0.72400 level and this ratio is bouncing along highs seen on the 23rd of December, but also importantly the value is within sight of higher marks demonstrated on the 22nd of November. On the 5th of December the AUD/USD approached the 0.70000 juncture below which was last sincerely challenged in November of 2020. And in July of 2020 the AUD/USD after suffering a bearish trend due to economic implications surrounding coronavirus, was able to puncture the 0.70000 value and has essentially remained above since then except for slight outliers.
The ability of the AUD/USD to fall below the 0.70000 mark in early December and then spark a reversal is intriguing. The reversal higher since the first week of December has been solid, but choppy. Yet it has been accomplished in the midst of global central bank pronouncements and fresh worries about the Omicron variant. If the AUD/USD is able to sustain its value above the 0.72300 to 0.72200 support ratios, this may be a positive sign for bullish traders who may believe targeting higher realms is realistic.
Because of the holiday trading season, traders should be careful about sudden spurts of volatility occurring which can knock open positions out of the market with losses. Traders should use stop loss orders appropriately. However, looking for potential bullish momentum and aiming for the 0.72500 to 0.72600 levels for quick hitting trades may be a solid short term wager, when buying on slight downticks which may be demonstrated.
Speculators who are considering a buying position of the AUD/USD near current support levels cannot be faulted. Certainly traders need to use their risk management wisely. If support levels erode, further downside price action can develop. However, cautious wagers looking for upside within the current price range of the AUD/USD may prove to be a worthwhile opportunity.
AUD/USD Short-Term Outlook
Current Resistance: 0.72760
Current Support: 0.72150
High Target: 0.73130
Low Target: 0.71650
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