Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

AUD/USD Video 16.10.20.


Australian Dollar Is Flat Against U.S. Dollar Ahead Of The Weekend

AUD/USD is mostly flat after yesterday’s sell-off as the U.S. dollar is little changed against a broad basket of currencies.

The U.S. Dollar Index continues to test the nearest resistance level at the 50 EMA at 93.75. It has already made several attempts to settle above this level but faced strong resistance.

In case the U.S. Dollar Index manages to settle above the 50 EMA, it will gain significant momentum and continue its upside move which will be bearish for AUD/USD.

Yesterday, U.S. Initial Jobless Claims report indicated that the job market recovery has stalled as Initial Jobless Claims increased from 845,000 to 898,000. It is not clear whether U.S. Republicans and Democrats will be able to reach consensus on the new coronavirus aid package before the November election so job market reports may get worse in the next few weeks.

Today, AUD/USD traders will focus on the new economic reports from the U.S. Retail Sales are expected to increase by 0.7% in September on a month-over-month basis. Industrial Production is projected to grow by 0.5% month-over-month while Manufacturing Production is expected to increase by 0.7%.

Technical Analysis

AUD/USD did not manage to settle below the support level at 0.7075 and remains in the range between 0.7075 and the nearest resistance at 0.7100.

If AUD/USD gets below the support at 0.7075, it will gain downside momentum and head towards the next material support level at 0.7030, although it may also get some support near the recent lows at 0.7055.

In case AUD/USD moves below the support at 0.7030, it will decline towards September lows at 0.7005.

On the upside, AUD/USD needs to get above the nearest resistance level at 0.7100 to have a chance to develop upside momentum. If AUD/USD gets above this resistance level, it will move towards the next resistance at 0.7130.

A move above the resistance at 0.7130 will open the way to the test of the next resistance at 0.7150. The 20 EMA is located at 0.7160 so the resistance area at 0.7150 – 0.7160 is set to be a strong obstacle on the way up for AUD/USD.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.