AUD/USD Daily Forecast – Attempt To Settle Below The Support At 0.7275

AUD/USD Video 12.11.20.

Australian Dollar Pulls Back

AUD/USD is currently trying to settle below the support at 0.7275 as the U.S. dollar continues to move higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get above the 20 EMA at 93.15. If the U.S. Dollar Index gets above this level, it will gain upside momentum and head towards the 50 EMA at 93.40. This scenario is bearish for AUD/USD.

Today, traders will focus on the latest economic data from the U.S. Inflation Rate is expected to increase by 1.3% year-over-year while Core Inflation Rate is projected to grow by 1.8%.

The yields on U.S. government bonds are pulling back after the recent rally but the situation may change quickly. At this point, higher yields provide some support to the American currency as they make investments in dollar-denominated debt more attractive compared to alternatives.

In addition to inflation data, the U.S. will provide Initial Jobless Claims and Continuing Jobless Claims reports. The Initial Jobless Claims report is projected to show that 735,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 7.29 million to 6.9 million.

Technical Analysis

AUD/USD managed to get below the support at 0.7275 and is moving towards the next support level at 0.7240. In case AUD/USD manages to settle below 0.7240, it will gain additional downside momentum and head towards the next support level at 0.7210.

RSI is in the moderate territory so there is plenty of room to gain downside momentum in case the right catalysts emerge. A successful test of the support at 0.7210 will open the way to the test of the next support level at the 20 EMA at 0.7195.

On the upside, AUD/USD needs to get back above 0.7275 to have a chance to develop upside momentum. The next resistance level, which has already been tested during the current trading session, has emerged near 0.7290. If AUD/USD moves above this resistance level, it will head towards the next resistance at 0.7310.

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