AUD/USD Daily Forecast – Australian Dollar Tries To Rebound At The Start Of The Week

AUD/USD Video 03.05.21.

Support At The 50 EMA Stays Strong

AUD/USD received support at the 50 EMA at 0.7710 and is trying to get above the resistance at the 20 EMA at 0.7730 while the U.S. dollar is pulling back against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at the 20 EMA at 91.35 and is moving towards the support at the 91 level. If the U.S. Dollar Index gets to the test of this level, AUD/USD will get more support.

Today, Australia reported that Manufacturing PMI increased from 56.8 in March to 59.7 in April compared to analyst forecast of 59.6.

Foreign exchange market traders will also have a chance to take a look at the final reading of U.S. Manufacturing PMI report which is expected to show that Manufacturing PMI increased from 59.1 in March to 60.6 in April.

Traders will also keep an eye on the developments in commodity markets which are mostly calm at the beginning of the week. If commodity markets continue to move higher, commodity-related currencies like Australian dollar will get more support.

Technical Analysis

AUD/USD failed to settle below the support at the 50 EMA at 0.7710 and is trying to settle above the resistance at the 20 EMA at 0.7730. If AUD/USD manages to settle above the 20 EMA, it will head towards the next resistance level which is located at 0.7750.

A successful test of the resistance at 0.7750 will open the way to the test of the resistance at 0.7775. A move above this level will push AUD/USD towards the next resistance at 0.7800.

On the support side, AUD/USD needs to settle below the support at the 50 EMA at 0.7710 to have a chance to develop additional downside momentum. If AUD/USD gets below the 50 EMA, it will get to the test of the support level at 0.7700.

A move below the support at 0.7700 will open the way to the test of the support at 0.7665. In case AUD/USD gets below this support level, it will head towards the support at 0.7635.

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