DAILY NOTION - FXEMPIRE - AUD/USD Forecast - Dec 07, 2020

The Australian Dollar is trading lower on Monday after posting a weak performance the previous session from its multi-week rally that had been driven by hopes for a vaccine-fueled global recovery next year.

The Aussie, which is a liquid proxy for risk, has rallied in recent weeks as investors chose to focus on the future prospects of a COVID-19 vaccine and the ensuing global rally in risk assets, rather than the worldwide resurgence in infections.

At 08:12 GMT, the AUD/USD settled at .7413, down 0.0015 or -0.20%.

In other news, Australian job advertisements jumped for a seventh straight month in November as the second-most populous state of Victoria emerged out of its long coronavirus-induced lockdown.

What's next?

The direction of the AUD/USD on Monday is likely to be determined by trader reaction to the first pivot at .7394.

For bullish scenario, a sustained move over .7394 will indicate the presence of buyers. If this move creates enough upside momentum then look for a retest of .7449. Taking out this level could spike the market into the July 9, 2018 main top at .7484.

For bearish scenario, crossing to the weak side of the former top at .7414 will be the first sign of weakness. Taking out the pivot at .7394 will indicate the selling is getting stronger. This could trigger a break into the next support cluster at .7352, .7339 and .7335.

Original analysis: https://www.fxempire.com/forec...