AUD/USD Daily Forecast – Australian Dollar Starts The Week On A Strong Note

AUD/USD Video 15.02.21.

U.S. Dollar Is Losing Ground Against Australian Dollar

AUD/USD is currently trying to settle above the resistance level at 0.7780 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the nearest support level at 90.30 and is trying to develop additional downside momentum. If this attempt is successful, the U.S. Dollar Index will head towards the next material support at the 90 level which will be bullish for AUD/USD.

Today, Australia reported that New Home Sales declined by 69.4% month-over-month in January after growing by 91.8% in December. The major fluctuations in New Home Sales were triggered by a HomeBuilder program which provided grants for households and had a deadline of December 31, 2020.

WTI oil managed to get above the $60 level as tensions increased in the Middle East between the Saudi-led coalition and Houthi group in Yemen. The continuation of the rally in the oil market provided material support to commodity-related currencies on the foreign exchange market. If oil continues to move higher, Australian dollar may get additional support.

Technical Analysis

AUD/USD gained upside momentum and is trying to settle above the resistance level at 0.7780. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If AUD/USD manages to settle above the resistance at 0.7780, it will head towards the next resistance level at 0.7800. A successful test of the resistance at 0.7800 will push AUD/USD towards the next resistance which is located at the yearly highs at 0.7820. Most likely, AUD/USD will need additional catalysts to settle above yearly highs and continue the current upside move.

On the support side, the nearest support level for AUD/USD is located at 0.7760. If AUD/USD declines below the support at 0.7760, it will head towards the next support level at 0.7740. A move below this level will push AUD/USD towards the support at 0.7725.

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