AUD/USD tries to get above Friday’s high
The general theme today is a reversal but in EUR/USD, GBP/USD and USD/JPY, the price action has been inside of Friday’s market move.
It’s a different story in AUD/USD. It fell below Friday’s low early in the day and broke narrowly above it in the latest burst of optimism about risk trades. Friday’s high was 0.6912 and so far the high is 0.6925 and we’re at 0.6920. I’ll be watching closely to see if we can hold above that level.
Even if the bulls can hang on, I don’t think anything is resolved at the moment. There’s a battle between the virus narrative and the easy-money narrative that’s not going to be solved today. The price action and overall reversal today is certainly good for the bulls but how solid is the foundation? Can retail keep buying risk?