AUDUSD is off to a bullish start in today’s trading as risk appetite picked up on encouraging news of a coronavirus vaccine from China. The currency pair is up at 0.6880 after it bottomed out at 0.6844 earlier.
According to Beijing-based Sinopharm Group, its second vaccine has passed tests and shows that it has been able to generate antibodies among its participants. This news has seemingly gotten some investors excited enough to look past the rising coronavirus cases in Australia. Recent data showed that there are 75 new cases in the last 24 hours.
On the 4-hour time frame, it can be seen that AUDUSD has been making lower highs and higher lows. Consequently, a symmetrical triangle chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is widely considered as a neutral indicator.
What you will need to watch out for is a breakout. A strong close above the top of the triangle at 0.6945 could mean that buyers are dominating market sentiment. Should this happen, we could soon see AUDUSD rally to its recent highs at 0.7040 where it peaked on June 9.
On the other hand, a strong close below the triangle at 0.6820 could mean that there are still sellers left in the market. The currency pair may then continue trading lower ot near-term support at 0.6775 where it bottomed on June 15. If support at this price does not hold, the next floor could be at 0.6660 where AUDUSD found resistance on May 27.