AUD/USD Daily Forecast – Australian Dollar Tries To Gain More Ground Against U.S. Dollar
AUD/USD Video 22.04.21.
Australian Dollar Is Flat Against U.S. Dollar
AUD/USD is testing the resistance at 0.7750 while the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle below the support at the 91 level but failed to develop sufficient downside momentum. In case the U.S. Dollar Index declines below this level, it will move towards the support at 90.70 which will be bullish for AUD/USD.
There are no important economic reports scheduled to be released in Australia today so foreign exchange market traders will focus on the economic data from the U.S.
Initial Jobless Claims are projected to grow from 576,000 to 617,000 while Continuing Jobless Claims are expected to decline from 3.73 million to 3.67 million. Analysts expect that Existing Home Sales increased by 0.8% month-over-month in March.
Traders will also keep an eye on the developments in U.S. government bond markets. Treasury yields have recently made an attempt to settle below multi-week lows, and it looks that inflation fears have been substantially reduced. In case Treasury yields continue to move lower, U.S. dollar may find itself under additional pressure.
AUD/USD is currently testing the resistance level at 0.7750. In case this test is successful, AUD/USD will move towards the next resistance which is located at 0.7775.
If AUD/USD manages to settle above this level, it will head towards the resistance at 0.7800. A successful test of this level will open the way to the test of the resistance at 0.7820.
On the support side, the nearest support level for AUD/USD is located at 0.7720. If AUD/USD declines below this level, it will head towards the next support at the 20 EMA at 0.7700. The 50 EMA is located in the nearby so AUD/USD will likely get strong support near 0.7700.
If AUD/USD manages to settle below the support at 0.7700, it will move towards the next support at 0.7665.
For a look at all of today’s economic events, check out our economic calendar.