KEY POINTS OF THE ARTICLE:

• Key facts: The dollar waiting for Biden's future policy
• Today's currency: AUD/USD Recovery on the bullish angle

Currency Table-Time Horizon: Daily

Resistance

Support

Bullish oblique in support

Horizontal rectangle break_OBJ 1,5685 reached then 1,5350

Correction-Return on support

0.7

Downward Oblique Test - Bullish Divergence

HIGHLIGHTS: THE DOLLAR AWAITING BIDEN'S FUTURE POLICY
The greenback weakened against most major currencies, due to the recovery of equity markets in Asia, which has increased risk-taking and dampened demand for safe haven currencies like the dollar and the Japanese yen

The dollar index fell to 90.70 during the Asian session, a day before the inauguration of American president-elect Joe Biden and after the US holiday.

The dollar slipped from near its highest level in nearly a month on Tuesday, with caution setting in ahead of the testimony of Janet Yellen, the nominee for US Treasury Secretary, with operators closely monitoring the policies of Joe Biden's new government.

The Wall Street Journal reported that Ms. Yellen will affirm a more traditional commitment to market-set exchange rates during Senate testimony on Tuesday.

That's a stark contrast to incumbent President Donald Trump, who has often criticised the strength of the dollar.

Janet Yellen has declared that she will not pursue a weak dollar policy per se, but that does not mean that the overall impact of Fed policy will not be in the direction of a further weakening of the dollar.

The greenback has also been supported recently by a resolution of bearish positions, with data showing that hedge funds accumulated the largest net short position since May 2011 in the week ending January 12. Such large positions suggest that traders would be relatively more inclined to reduce their positions than to increase already large bets, which is positive for the dollar in the short term

For its part, the euro hit a low of 1.2054 above the major support at 1.2000. The recent restrictive measures to combat Covid in Europe and the fear of seeing them spread to the entire zone penalize the single currency

The Australian dollar is benefiting from good growth figures in China.

TODAY'S CURRENCY: AUD/USD RECOVERY ON AN UPWARD OBLIQUE
The Australian dollar hit a doji yesterday with an upward slant and the 34-period moving average followed by a bullish session this morning. If this positive candlestick was confirmed at the end of the session, then this would be a signal that the consolidation that had begun since the highs of 0.7815 might be over

Above these two ascending supports, the trend is positive and prices could return to the weekly resistance of April 2018. A break in these supports and even more so in the polarity line at 0.7640 would mark the end of the increase that began