AUD/USD Daily Forecast – Australian Dollar Pulls Back

AUD/USD Video 12.02.21.

Australian Dollar Is Losing Ground Ahead Of The Weekend

AUD/USD is currently trying to settle below the support level at 0.7740 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get above the resistance at 90.50 and is moving towards the next resistance level at the 20 EMA at 90.65. If the U.S. Dollar Index gets above the 20 EMA, it will head towards the next resistance level at the 50 EMA at 90.80 which will be bearish for AUD/USD.

Today, foreign exchange market traders will focus on Consumer Confidence data from the U.S. Analysts forecast that Consumer Confidence increased from 79 in January to 80.8 in February.

Oil moved lower after OPEC decreased its oil demand forecast which put pressure on commodity-related currencies including Australian dollar. If the pullback in commodity markets continues, Australian dollar may find itself under additional pressure.

Technical Analysis

AUD/USD faced resistance near 0.7760 and pulled back towards the support at 0.7740. Currently, AUD/USD is trying to settle below this level. If AUD/USD manages to settle below 0.7740, it will move towards the next support level at 0.7725. This support level has already been tested several times during recent trading sessions and proved its strength.

A successful test of the support at 0.7725 will open the way to the test of the next support level which is located at the 20 EMA at 0.7700. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge. If AUD/USD gets below the 20 EMA, it will move towards the next support level at 0.7665.

On the upside, the nearest resistance level for AUD/USD is located at 0.7760. In case AUD/USD gets 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.