AUD/USD Daily Forecast – Australian Dollar Tries To Rebound After Sell-Off

AUD/USD Video 13.11.20.

U.S. Dollar Is Losing Ground Against Australian Dollar Ahead Of The Weekend

AUD/USD is currently trying to get back above 0.7240 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index did not manage to get back above the 93 level and is trying to gain downside momentum. The nearest support level for the U.S. Dollar Index is located at 92.80. If the U.S. Dollar Index declines below this level, it will gain downside momentum and head towards recent lows at 92.60 which will be bullish for AUD/USD.

Today, U.S. will provide Producer Price Index (PPI) data for October. On a month-over-month basis, producer prices are expected to increase by 0.2%. Meanwhile, Core PPI is also projected to grow by 0.2%.

The recent Inflation Rate and Core Inflation Rate reports were below analyst expectations, and it looks like there is no significant pricing pressure in the U.S.

Technical Analysis

AUD/USD has found some support at 0.7225 and is trying to get back above 0.7240 which serves as the first resistance level. If AUD/USD manages to settle above 0.7240, it will gain upside momentum and head towards the next resistance level at 0.7275.

A move above the resistance at 0.7275 will open the way to the test of the next resistance which has recently emerged at 0.7290. This resistance level has been tested many times. On some occasions, AUD/USD was able to get above the resistance at 0.7290 but ultimately failed to settle above this level.

If AUD/USD moves above 0.7290, it will head towards the resistance at 0.7325, although it may also face some resistance at 0.7310.

On the support side, AUD/USD needs to get below the nearest support level at 0.7225 to continue its downside move. If it gets below this level, it will gain additional downside momentum and head towards the the next support level which is located at 0.7210. A move below this support level will push AUD/USD towards the test of the next support at the 20 EMA at 0.7195.

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