KEY POINTS OF THE ARTICLE:

• General context: busy calendar in Europe
• Today's currency: AUD/USD Bullish dynamics

Currency Table-Time Horizon: Daily

GENERAL CONTEXT: BUSY CALENDAR IN EUROPE

EU leaders are due to meet in Brussels to discuss further coordination among members to fight the pandemic, as well as issues such as climate change and security. The summit comes after Poland and Hungary agreed on a budget compromise with Germany, and while Brexit negotiations are set to continue until Sunday.

Attention is turning to the European Central Bank in Frankfurt this afternoon, as ECB policymakers have indicated that they will extend their unprecedented monetary stimulus programs. Investors expect the ECB to at least increase its emergency purchase program from $400 billion to $600 billion and extend it until the end of 2021 and possibly even 2022. Further asset purchases are also likely, but most economists do not anticipate a rate cut.

On the market the book weakened yesterday while the Johnson Von der Leyen meeting did not advance the negotiations. GBP/USD retreats below the resistance at 1.3500. The greenback recovered slightly benefiting from its safe-haven status in parallel with a negative session on equities. The Australian dollar benefited from an improvement in consumer confidence.

TODAY'S CURRENCY: AUD/USD DYNAMIC BULLISH

Since crossing the descending oblique, the trend is bullish. Prices are trading above the rising moving averages at 13 and 34 periods. The Australian dollar continues to advance towards the resistance at 0.7500 which caused short-lived profit-taking yesterday with a pair rising again today.

In case of exceedance, the next resistance is 0.7677. The support is on 0.7414 old resistance becoming support.

Evolution of the AUD/USD in daily data: