AUD/USD long-term outlook
The bullish sentiment is enveloping the market in July despite the surge in new cases of coronavirus. The market are monitoring closely the development of economy reopening and cases of coronavirus. As of now, there are 11.5 million confirmed cases globally. New daily cases fluctuate between 175k – 200k which might lead us to see 1.5 million cases soon. Death tolls topped 500k and increased 4k – 5k daily.
If the economy reopening put to halt or rolled-back in the response of the current surge of new cases of coronavirus then we might see AUD/USD flip direction.
At the current time, 0.7000 is the major level to watch in the pair.
AUD/USD ade third bullish close after it bounced from the 0.5500 – 0.6000 levels. The pair upward momentum might continue but we are inside the 0.6750 – 0.7050 area now. If there is no bullish close above 0.7050 this month then AUD/USD might start consolidation inside the area.
Traders who have long positions could continue holding it with a stop below 0.6750.
Similar to the situation in the monthly chart, AUD/USD continues adding bullish pressure. Recently, there was rejection from the 0.7000 – 0.7050 area. However, the pair did not make a bearish close below 0.6750. As long as the pair stays above 0.6750, AUD/USD could continue upward to test the resistance area.
We are waiting for another test on 0.7000 – 0.7050 area. AUD/USD soon will reach the level and give us either breakout or rejection reaction. It is better to wait for the reaction before placing any orders. Short positions with a tight stop above 0.7050 could be considered.
On the other side, long positions are best taken when the pair make bearish correction toward 0.6750.
AUD/USD currently trading inside the 0.6750 – 0.7050 area. The trend is bullish for now but traders might want to refrain from taking long positions until the pair breakout above the area. Short positions are possible with a tight stop above 0.7050.
Not much clue, for now, ranging strategies also viable between 0.6750 – 0.7050 until breakout happens.