AUD/USD Daily Forecast – Australian Dollar Tries To Move Higher Against U.S. Dollar

AUD/USD Video 11.11.20.

Australian Dollar Is Gaining Some Ground Against U.S. Dollar

AUD/USD continues its attempts to settle above 0.7300 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to gain downside momentum but received support near 92.60 and rebounded back to 92.75. The nearest resistance level for the U.S. Dollar Index is located at the 93 level. If the U.S. Dollar Index manages to settle above this level, it will gain upside momentum and head towards the next resistance at the 20 EMA at 93.15 which will be bearish for AUD/USD.

It looks like U.S. dollar gets some support from the recent comments of Senate Majority Leader Mitch McConnell, who stated that a huge coronavirus aid package was not needed and that he would prefer to see a highly targeted bill.

I’d note that U.S. government bond yields continue to increase, and the yield on 10-year notes is already close to 1.00%. The rising yield on dollar-denominated debt provides some support to the American currency although it remains to be seen whether yields will continue to increase at the current pace.

At some point, the U.S. Fed may want to intervene and stop the rising yields, implementing a policy that is similar to the one which has been recently announced by the Reserve Bank of Australia.

Technical Analysis

AUD/USD is still trying to settle above 0.7300. The nearest resistance for AUD/USD is located at 0.7310. If AUD/USD manages to get above this level once again, it will head towards the next resistance at 0.7325.

A move above 0.7325 will lead to a test of the significant resistance level at 0.7340. At this point, it looks like AUD/USD will need additional catalysts to settle above 0.7340.

On the support side, the nearest support level for AUD/USD is located at 0.7275. This level has already been tested several times and proved its strength.

If AUD/USD declines below the support at 0.7275, it will gain downside momentum and head towards the next support level at 0.7240.In case AUD/USD gets below 0.7240, it will head towards the next support at 0.7210.

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