06.01 - AUD/USD gained strong positive traction
- by George Solotarov
The AUD/USD pair added to the previous day's strong positive move and continued scaling higher for the second consecutive session on Wednesday. The momentum pushed the pair to fresh 33-month tops, with bulls now eyeing a move beyond the 0.7800 mark. Increasing bets for a Democrat-led Senate and expectations for additional fiscal measures prompted some fresh selling around the US dollar. This, in turn, was seen as a key factor that provided a goodish lift to the AUD/USD pair and remained supportive.
Any subsequent weakness might prompt some profit-taking and turn the pair vulnerable to break below the 0.7700 mark. The corrective slide could further get extended and drag the AUD/USD pair back towards weekly swing lows, around the 0.7640 region. On the flip side, a sustained move beyond the 0.7800 mark has the potential to lift the AUD/USD pair further towards the 0.7845-50 region.