AUD/USD Daily Forecast – Another Test Of Support At 0.7600 Yields No Results

AUD/USD Video 12.04.21.

Australian Dollar Is Mostly Flat Against U.S. Dollar

AUD/USD has recently made an another attempt to settle below the major support level at 0.7600 but failed to develop sufficient downside momentum while the U.S. dollar moved higher against a broad basket of currencies.

The U.S. Dollar Index is currently located in the range between the support at 91.15 and the resistance at the 20 EMA at 92.30. A move above the 20 EMA will signal that the U.S. Dollar Index is ready to develop additional upside momentum which will be bearish for AUD/USD.

There are no important economic reports scheduled to be released in the U.S. and Australia today so foreign exchange market traders will monitor the dynamics of commodity markets and keep an eye on the developments in U.S. government bond markets.

Commodity markets are currently moving lower as traders are worried about the situation with coronavirus in India which is a major consumer of commodities. Yesterday, India recorded almost 170,000 cases of coronavirus which was a new daily record. If the situation in India gets worse, commodity-related currencies may find themselves under more pressure.

Technical Analysis

AUD/USD failed to settle below the key support level at 0.7600 and remained in the range between the support at 0.7600 and the resistance at 0.7635.

If AUD/USD manages to settle above the resistance at 0.7635, it will move towards the resistance which is located at the 20 EMA at 0.7650. A successful test of this level will push AUD/USD towards the resistance at 0.7665. In case AUD/USD gets above the resistance at 0.7665, it will get to the test of the next resistance at the 50 EMA at 0.7675.

On the support side, AUD/USD needs to get below the major support level at 0.7600 to gain downside momentum. If AUD/USD settles below this level, it will quickly get to the test of the next support at 0.7575. A move below the support at 0.7575 will open the way to the test of the next support level at 0.7535.

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