Good afternoon team,
Global equities are moving in a risk-on sentiment despite the recent outbreaks of Covid-19. One reason is potentially due to Joe Bidens infrastructure spending which is due to be announced tomorrow and is believed to be in the region of $3-4 trillion. The risk-on sentiment should benefit the AUD and other commodity-related currencies. We can see the JPY weakening across the board already this morning.
AUDUSD – 4 Hour Charts
There is currently a rising channel formation in play on the AUDUSD. As the trend has not broken, we can assume the bullish sentiment remains intact.
AUDUSD – 1 Hour Charts
Trade Setup: BUY market execution, current price 0.7648, stop loss 0.7564 and take profit 0.7818.
Stop loss: 84 pips
Take profit: 170 pips