AUD/USD Daily Forecast – Australian Dollar Is Under Pressure Against U.S. Dollar

AUD/USD Video 17.03.21.

U.S. Dollar Is Gaining Some Ground Ahead Of The Fed Interest Rate Decision

AUD/USD is currently trying to settle below the support at the 50 EMA at 0.7725 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get closer to the high end of the current trading range between the support at 91.75 and the resistance at 92. In case the U.S. Dollar Index manages to settle above the resistance at 92, it will gain additional upside momentum and head towards the next resistance level at 92.25.

Today, traders will be focused on the Fed Interest Rate Decision. The rate will remain unchanged but Fed’s commentary may have a big impact on the foreign exchange market. If Fed Chair Jerome Powell fails to calm bond markets and Treasury yields continue to move higher, the U.S. dollar will get additional support.

The U.S. will also release Building Permits and Housing Starts reports for February. Analysts expect that Building Permits decreased by 7.2% month-over-month while Housing Starts grew by 2.3%.

Technical Analysis

AUD/USD faced strong resistance at the 20 EMA at 0.7750 and declined towards the nearest support level at the 50 EMA at 0.7725. This support level has already been tested several times in recent trading sessions, and attempts to settle below the 50 EMA yielded no results.

In case AUD/USD manages to settle below the 50 EMA, it will gain additional downside momentum and head towards the next support level at 0.7700. A successful test of the support at 0.7700 will push AUD/USD towards the support at 0.7665. In case AUD/USD gets below the support at 0.7665, it will head towards the next support level at 0.7635.

On the upside, AUD/USD needs to get above the 20 EMA at 0.7750 to have a chance to gain upside momentum in the near term. If AUD/USD settles above this level, it will head towards the next resistance at 0.7780. A move above the resistance at 0.7780 will push AUD/USD towards the next resistance level which is located at 0.7800.

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