A break of US$0.6000 may trigger a ‘short squeeze’ to the Australian Dollar

March 25, 2020 - 1 week ago
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The Australian Dollar has displayed yet another roller-coaster ride against its greenback rival in the last 24 hours, after rebounding from an intraday low of US$0.5809 to an intraday high of US$0.5989, its highest point so far for this week.

Late yesterday, PM Scott Morrison announced that the government is extending restrictions on social movements, adding to the world’s social-distancing stance to contain the spread of Covid-19.

Meanwhile, Senior Democrats and Republicans said they were close to a deal on a $2 trillion stimulus bill, aimed at providing financial aid to Americans out of work and help for distressed industries.

However, talks continued with no word of a deal by late Tuesday afternoon.

From the technical standpoint, as the bulls continue to chip-away at the US$0.5980-US$0.6000, it is assessed that this level should continue to be guarded.

However, if breached, could trigger a squeeze US$0.6060-75 before any likely turnaround.

Due to the high volatility, trading will continue to come at a “high risk” given to the uncertainty of the market conditions.

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