AUD/USD Daily Forecast – Australian Dollar Remains Under Pressure

AUD/USD Video 20.10.20.

U.S. Dollar Continues To Gain Ground Against Australian Dollar

AUD/USD remains under pressure as the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get back above the 20 EMA at 93.55. If this attempt is successful, the U.S. Dollar Index will gain additional upside momentum and head towards the next resistance level at the 50 EMA at 93.75. This scenario will be bearish for AUD/USD.

Today, AUD/USD traders will focus on the economic data from U.S. Building Permits are projected to increase by 1.8% month-over-month in September while Housing Starts are expected to grow by 2.8%.

In addition to economic news, the market will pay attention to the U.S. coronavirus aid package negotiations. At this point, it looks like Republicans and Democrats will not be able to reach any deal before the November election. However, a last-minute deal is also possible.

Technical Analysis

AUD/USD has managed to settle below 0.7075 and gained additional downside momentum. However, it received support at 0.7030 and is currently trading in the range between the support at 0.7030 and the resistance at 0.7075.

If AUD/USD manages to settle below the support level at 0.7030, it will continue its downside move and head towards September lows at 0.7005. A move below the support at 0.7005 will open the way to the test of the next support level at 0.6975.

On the upside, the nearest resistance level for AUD/USD is located at the previous support level at 0.7075. AUD/USD needs to settle above this level to have a chance to develop upside momentum.

If AUD/USD moves above the resistance at 0.7075, it will gain additional upside momentum and head towards the next resistance at 0.7100.

A successful test of the resistance at 0.7100 will open the way to the next resistance at 0.7130. The 20 EMA is located in the nearby, so this resistance level is set to be a significant obstacle on the way up for AUD/USD.

If AUD/USD manages to settle above the resistance at 0.7130, it will move towards the next resistance level at 0.7150.

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