AUD/USD Daily Forecast – Australian Dollar Attempts To Rebound Against U.S. Dollar
AUD/USD Video 08.04.21.
Another Test Of Resistance At 0.7635
AUD/USD is currently trying to get back above the resistance at 0.7635 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index declined below the support at the 20 EMA at 92.35 but failed to develop additional downside momentum. If the U.S. Dollar Index manages to settle back above the 20 EMA, it will head towards the resistance at 92.50 which will be bearish for AUD/USD.
Today, foreign exchange market traders will focus on employment reports from the U.S. Analysts expect that Initial Jobless Claims report will indicate that 680,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 3.79 million to 3.65 million.
It should be noted that Treasury yields continue to move lower which is bearish for the U.S. dollar. The yield of 10-year Treasuries is currently located at 1.65%, while the nearest significant support level is located at the 20 EMA at 1.64%. A move below the 20 EMA will signal that yields are ready to continue their pullback, which may put more pressure on the American currency.
AUD/USD failed to settle below the support at 0.7600 and is trying to get back above the resistance at 0.7635. In case this attempt is successful, AUD/USD will head towards the resistance which is located at the 20 EMA at 0.7655.
A successful test of the resistance at the 20 EMA at 0.7655 will open the way to the test of the resistance at the 50 EMA at 0.7685. If AUD/USD manages to settle above the 50 EMA, it will move towards the next resistance level at 0.7700.
On the support side, the nearest support level for AUD/USD is located at 0.7600. This support level has already been tested many times in recent trading sessions, and it looks that AUD/USD will need additional catalysts to settle below 0.7600.
If AUD/USD gets below this level, it will move towards the support at 0.7575. A move below this level will push AUD/USD towards the next support at 0.7535.
For a look at all of today’s economic events, check out our economic calendar.