Fundamental view:

Aussie showed a mixed trend for the past week. A tough lockdown was imposed in South Australia, although it was lifted sooner than expected after contact tracers found out that one infected person deliberately lied about his exposure and contact with others. South Australia state Premier Steven Marshall explained the situation in a press conference, indicating that such lies made authorities believe they were facing a highly contagious strain.

NAHB Housing Market Index on 17^th November and US TIC Long-Term Purchases on 18^th November favored a bearish trend for the pair whereas Australia Employment Change & Unemployment Rate on 19^th November and US Natural Gas Storage on 19^th November favored bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are US Markit Manufacturing PMI at Nov 23, US CB Consumer Confidence Index at Nov 24, Australia Construction Work Done quarterly report, US GDP quarterly report, US Core Durable Goods Orders monthly report, US Initial Jobless Claims, FOMC Minutes at Nov 25, and Australia Private New Capital Expenditure quarterly report at Nov 26.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was same as the previous week. Maintaining high at 0.7340 and low at 0.7254 showed a movement of 86 pips.

In the upcoming week we expect AUD/USD to show a bullish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 0.7346 may open a clean path towards 0.7385 and may take a way up to 0.7431. Should 0.7261 prove to be unreliable support, the AUDUSD may sink downwards 0.7215 and 0.7175 respectively. In H4 chart bullish gartley pattern formation favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.