AUD/USD Daily Forecast – Australian Dollar Moves Higher After Recent Sell-Off

AUD/USD Video 01.03.21.

U.S. Dollar Is Losing Ground Against Australian Dollar At The Start Of The Week

AUD/USD is currently trying to settle above the resistance at 0.7760 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to another test of the support at the 50 EMA at 90.65 but failed to develop sufficient downside momentum and rebounded closer to the resistance at 90.90. If the U.S. Dollar Index settles above this level, it will head towards the 91 level which will be bearish for AUD/USD.

Today, Australia reported that Manufacturing PMI declined from 57.2 in January to 56.9 in February compared to analyst consensus of 56.6. Meanwhile, Home Loans increased by 10.9% month-over-month in January compared to analyst forecast which called for growth of just 3.5%. The report indicated that Australia’s housing market remained strong thanks to the country’s success in virus containment.

Foreign exchange market traders will also have a chance to take a look at Manufacturing PMI data from the U.S. Analysts expect that U.S. Manufacturing PMI declined from 59.2 in January to 58.5 in February.

Technical Analysis

AUD/USD is currently testing the nearest resistance level at 0.7760. If this test is successful, it will move towards the next resistance level which is located at the 20 EMA at 0.7785. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.

A move above the 20 EMA will push AUD/USD towards the resistance at 0.7800. In case AUD/USD gets above this level, it will head towards the next resistance which is located at 0.7820.

On the support side, the nearest support level for AUD/USD is located at 0.7735. In case AUD/USD declines below the support at 0.7735, it will head towards the next support at the 50 EMA at 0.7720. A move below the 50 EMA will open the way to the test of the support level which is located at 0.7700.

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