AUD/USD Daily Forecast – Australian Dollar Remains Weak Against U.S. Dollar

AUD/USD Video 16.03.21.

Austalian Dollar Is Under Pressure

AUD/USD is currently trying to settle below the support at the 50 EMA at 0.7725 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get to the test of the nearest resistance level at 92. A move above this level will open the way to the test of the resistance at 92.25 which will be bearish for AUD/USD.

Treasury yields have pulled back a bit this week. However, they remain close to recent highs while traders wait for the Fed Interest Rate Decision which will be announced on Wednesday. The rate is projected to stay unchanged, but Powell’s comments may have a significant impact on the foreign exchange market.

Today, traders will have a chance to evaluate the latest Retail Sales data from the U.S. Analysts expect that Retail Sales declined by 0.5% month-over-month in February as consumer activity cooled down after solid growth in January. Soon, Retail Sales will be impacted by the new round of economic stimulus so it remains to be seen whether the market will pay close attention to February numbers.

Technical Analysis

AUD/USD is currently testing the support level at the 50 EMA at 0.7725. If this test is successful, AUD/USD will head towards the next support which is located at 0.7700.

A move below the support at 0.7700 will open the way to the test of the next support at 0.7665. In case AUD/USD settles below this support level, it will head towards the next support which is located near the lows of the previous pullback at 0.7635.

On the upside, the nearest resistance level for AUD/USD is located at the 20 EMA at 0.7750. This resistance level has been tested during the current trading session and proved its strength.

If AUD/USD settles above this level, it will head towards the next resistance at 0.7780. A move above the resistance at 0.7780 will open the way to the test of the resistance at 0.7800.

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