AUD/USD Daily Forecast – Australian Dollar Remains Strong

AUD/USD Video 24.02.21.

Australian Dollar Tries To Continue Its Upside Move

AUD/USD continues its attempts to settle above the resistance at 0.7910 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest support level at 90. This level has already been tested several times in recent trading sessions and proved its strength. In case the U.S. Dollar Index declines below the support at 90, it will move towards the support at 80.75 which will be bullish for AUD/USD.

Today, foreign exchange market traders will have a chance to take a look at U.S. housing market data. Analysts expect that New Home Sales increased by 2.1% month-over-month in January after growing by 1.6% in December.

Traders will also continue to monitor the developments in the U.S. bond market. It looks like Fed Chair Jerome Powell managed to calm bond markets during his testimony before Congress. Today, he will provide additional comments during the second day of his testimony, and the U.S. dollar will remain sensitive to any commentary about future monetary policy.

Technical Analysis

AUD/USD is currently trying to stay above 0.7910. If AUD/USD manages to settle above this level, it will get to another test of the next resistance level at 0.7935. A move above this level will push AUD/USD towards the resistance which is located near the recent highs at 0.7950.

RSI is in the overbought territory so the risks of a pullback are increasing. However, RSI is below levels which were reached at the beginning of the year, so there is still plenty of room to gain additional upside momentum in case the right catalysts emerge. If AUD/USD gets above 0.7950, it will move towards the resistance at 0.7980.

On the support side, a move below 0.7910 will open the way to the test of the support at 0.7890. A successful test of the support at 0.7890 will push AUD/USD towards the support at 0.7875. In case AUD/USD declines below this level, it will head towards the next support at 0.7860.

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