AUD/USD Daily Forecast – Australian Dollar Moves Higher Against U.S. Dollar

AUD/USD Video 18.02.21.

U.S. Dollar Is Losing Ground Against Australian Dollar

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

The U.S. Dollar Index has recently managed to get below the nearest support level at 90.90 and is trying to gain additional downside momentum. The next support level for the U.S. Dollar Index is located at the 50 EMA at 90.80. If the U.S. Dollar Index declines below this level, it will head towards the next support at the 20 EMA at 90.65 which will be bullish for AUD/USD.

Today, Australia reported that Unemployment Rate declined from 6.6% in December to 6.4% in January while analysts expected that it would decrease to 6.5%. Meanwhile, Employment Change report indicated that employment increased by 29,100 people compared to analyst consensus of 40,000. The employment data indicates that the Australian economy continues to rebound thanks to the country’s success in containing coronavirus.

Foreign exchange market traders will also have a chance to take a look at U.S. employment data. Initial Jobless Claims are expected to decline from 793,000 to 765,000 while Continuing Jobless Claims are projected to decrease from 4.54 million to 4.41 million.

Technical Analysis

AUD/USD managed to settle above 0.7740 and is trying to settle above the resistance at 0.7760. If this attempt is successful, AUD/USD will move towards the next resistance level at 0.7780.

A successful test of the resistance at 0.7780 will open the way to the test of the next resistance which is located at 0.7800. In case AUD/USD gets above the resistance at 0.7800, it will head towards the resistance at the yearly highs at 0.7820.

On the support side, the nearest support level for AUD/USD is located at 0.7740. If AUD/USD gets below this level, it will move towards the next support level near the 20 EMA at 0.7725. A move below the 20 EMA will push AUD/USD towards the support at 0.7700.

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