AUD/USD Daily Forecast – Australian Dollar Rebounds At The Beginning Of The Week

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Published: Feb 1, 2021, 08:44 GMT+00:00

AUD/USD settled above the resistance at 0.7635 and is moving towards the next resistance level at 0.7675.

Australian Dollar Moves Higher Against U.S. Dollar

AUD/USD is currently trying to get to the test of the resistance level at 0.7675 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index is located above the nearest support level at 90.50 and is trying to get to the test of the significant resistance level at the 50 EMA at 90.75. A move above the 50 EMA will push the U.S. Dollar Index towards the resistance at 91.10 which will be bearish for AUD/USD.

Today, Australia reported that Manufacturing PMI increased from 55.7 in December to 57.2 in January. Foreign exchange market traders will also have a chance to take a look at U.S. Manufacturing PMI data which will be released later on Monday. Analysts project that U.S. Manufacturing PMI will grow from 57.1 to 59.1.

U.S. President Joe Biden stated that he was ready to discuss his coronavirus aid package proposal with Republican senators who wanted a more targeted bill. The ultimate size of the new bill remains uncertain, and traders have abstained from making major moves in recent trading sessions.

Technical Analysis

AUD/USD managed to get above the resistance at 0.7635 and is trying to get to the test of the next resistance level which is located at 0.7675. If AUD/USD settles above this level, it will head towards the next resistance at the 20 EMA at 0.7690.

A move above this level will push AUD/USD towards the resistance at 0.7725, although it may also face some resistance near 0.7700.

On the support side, the previous resistance at 0.7635 will likely serve as the first support level for AUD/USD. If AUD/USD settles below this level, it will head towards the next support level which is located at the 50 EMA at 0.7615.

In case AUD/USD declines below the 50 EMA, it will head towards the next support level at 0.7575 although it may also receive some support near 0.7600.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.