AUD/USD Daily Forecast – Another Test Of Resistance At 0.7760

AUD/USD Video 14.01.21.

Australian Dollar Gains Ground Against U.S. Dollar

AUD/USD continues its attempts to settle above the resistance at 0.7760 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made several attempts to get to the test of the nearest resistance level at 90.50. A move above this level will push the U.S. Dollar Index towards the next resistance at 90.70 which will be bearish for AUD/USD.

Traders have completely ignored the recent vote in the U.S. House of Representatives which led to the second impeachment for the U.S. President Donald Trump. The vote in the Senate is unlikely to take place before President-elect Joe Biden enters office on January 20, and it remains to be seen whether the foreign exchange market will be sensitive to any news on this front.

According to recent reports, Biden will soon propose a $2 trillion stimulus package which may provide additional support to riskier assets, including commodity-related currencies like the Australian dollar.

Today, Australia reported that Building Permits grew by 2.6% month-over-month in November, in line with the analyst consensus. Later, traders will have a chance to take a look at U.S. Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims are projected to grow from 787,000 to 795,000 while Continuing Jobless Claims are expected to decline from 5.07 million to 5.06 million.

Technical Analysis

AUD/USD failed to settle below the support at 0.7740 and is trying to get back above the resistance at 0.7760. If this attempt is successful, AUD/USD will move towards the next resistance level which has emerged at 0.7780.

A successful test of the resistance at 0.7780 will push AUD/USD towards the next resistance level which is located at 0.7800.

On the support side, AUD/USD needs to settle below the support at 0.7740 to have a chance to develop downside momentum. The next support level has recently emerged at 0.7725. In case AUD/USD declines below this level, it will move towards the next support at 0.7700.

For a look at all of today’s economic events, check out our economic calendar.