AUD/USD Daily Forecast – Australian Dollar Remains Under Significant PressureAUD/USD is trying to settle below the 50 EMA.
AUD/USD Video 28.01.21.
Australian Dollar Moves Lower Against U.S. Dollar
AUD/USD is testing the support level at the 50 EMA at 0.7610 while the U.S. dollar is gaining ground against a broad basket of currencies.
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The U.S. Dollar Index has recently made an attempt to settle above the resistance at the 50 EMA at 90.80 but failed to develop sufficient upside momentum. The nearest significant support level for the U.S. Dollar Index is located at 90.50. If the U.S. Dollar Index declines below the support at 90.50, it will head towards the next support level at the 20 EMA at 90.35 which will be bullish for AUD/USD.
On Wednesday, the U.S. Fed left the interest rate unchanged and stated that it would proceed with asset purchases at the current pace. The Fed’s commentary did not have a major impact on the market, and traders remained focused on selling riskier assets on fears about the continued negative impact of the second wave of the virus.
Today, foreign exchange market traders will focus on the economic data from the U.S. The Initial Jobless Claims report is expected to show that 875,000 Americans filed for unemployment benefits in a week. Meanwhile, Continuing Jobless Claims are projected to remain unchanged at 5.05 million.
AUD/USD managed to settle below the support at 0.7635 and is trying to settle below the 50 EMA at 0.7610. If AUD/USD declines below this level, it will head towards the next support level at 0.7575. A successful test of the support at 0.7575 will push AUD/USD towards the next support level which is located at 0.7540.
On the upside, the previous support at 0.7635 will likely serve as the first resistance level for AUD/USD. In case AUD/USD manages to settle above this level, it will head towards the next resistance which is located at 0.7675.
A move above the resistance level at 0.7675 will open the way to the test of the resistance at the 20 EMA near 0.7700.
For a look at all of today’s economic events, check out our economic calendar.