The Australian Dollar broke to fresh highs against the U.S. Dollar over the course of the past 24 hours leading analyst Richard Perry of Hantec Markets to say 0.7295 and 0.7395 are the next targets on the horizon.

There are days when picking the “Chart of the Day” is somewhat of an onerous task. Today, there has been a plethora of options, but the Aussie is certainly one of the more interesting charts nonetheless.

With the ongoing strength in performance of the Australian dollar against US dollar in recent weeks, the Aussie did not need much to drive for the next upside break.

The original breakout above the old June high of 0.7060 held this perfectly as support in recent weeks as the market has built higher.

Yesterday’s break above resistance at 0.7240 may not have held ground into the close (the session ended bang on 0.7240), but it does show that the bulls are ready to make the next move.

A decisive move clear of 0.7240 would be the latest bull move that would open 0.7295 and 0.7395 which are resistance from late 2018.

Momentum indicators are swinging higher in positive configuration with upside potential, all suggesting that intraday weakness is a chance to buy.

The 21 day moving average (today c. 0.7165) has been supportive as a basis for the bulls to gauge their buying opportunities for several months now. Initial support is at 0.7130/0.7190 whilst it would need a close below 0.7060 to change the outlook now.

The dollar has come under increasing pressure in recent days in a move that has now driven the greenback down to levels not seen since Q2 2018.

With Treasury yields falling along with a bull flattening yield curve, whilst fx futures positioning continue to reflect a market massively short USD, the dollar seems to be in the midst of a perfect storm right now.

The lack of consensus amongst US politicians has certainly played a role in the dollar weakness, with a package of fiscal support measures still some way off.

Perhaps though there is some movement to come on fiscal support, with the Democrats supposedly willing to cut their demands “in half”.

It is interesting to see this has just steadied a rocky boat for the dollar this morning (pulling gold also lower), but the storm has not cleared yet.

A weaker dollar helps to fuel US equities on a bull run, and we saw the S&P 500 touching all-time highs during yesterday’s session. The Fed minutes will certainly be eyed today, with traders looking for any signals of further imminent easing.

Away from the US, Japanese trade data has come in slightly better than expected overnight. UK inflation has also surprised sharply to the upside this morning, similar to the US data surprise last week, and again likely to be a knee-jerk to economy re-opening and unlikely to be sustaining.