AUD/USD Daily Forecast – Australian Dollar Tries To Continue Its Rebound

AUD/USD Video 02.04.21.

Test Of Resistance At 0.7635

AUD/USD is currently trying to settle above the resistance at 0.7635 while the U.S. dollar is losing some ground against a basket of currencies.

The U.S. Dollar Index managed to decline below the support at the 93 level and made an attempt to get to the test of the next support at 92.70 but failed to develop sufficient downside momentum. In case the U.S. Dollar Index declines towards 92.70, AUD/USD will get more support.

Today, trading activity is muted in the foreign exchange market due to Easter holidays. However, traders will have a chance to take a look at important job market data from the U.S.

Non Farm Payrolls report is projected to show that the U.S. economy added 647,000 jobs in March while Unemployment Rate is expected to decline from 6.2% to 6%.

Yesterday’s Initial Jobless Claims was worse than expected, but it had little impact on the currency dynamics in the foreign exchange market as traders focused on falling Treasury yields. The yield of 10-year Treasuries has pulled back from the recent highs at 1.77% to 1.67% which was bearish for the U.S. dollar. Bond markets are closed today, so traders will have to wait until next Monday to see whether the pullback continues.

Technical Analysis

AUD/USD managed to settle back above 0.7600 and is trying to settle above the resistance at 0.7635. In case this attempt is successful, AUD/USD will move towards the next resistance level at the 20 EMA at 0.7665.

A successful test of the resistance at the 20 EMA will open the way to the test of the next resistance which is located at the 50 EMA at 0.7695.

On the support side, the nearest support level for AUD/USD is located at 0.7600. A move below this level will push AUD/USD towards the support at 0.7575. In case AUD/USD manages to decline below this level, it will head towards the next support at the recent lows at 0.7535.

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