AUD/USD Daily Forecast – Resistance At 0.7310 In Sight

AUD/USD Video 09.11.20.

Australian Dollar Gains Ground Against U.S. Dollar At The Beginning Of The Week

AUD/USD has made an attempt to settle above 0.7300 while the U.S. dollar was mostly flat against a broad basket of currencies at the start of the week.

The U.S. Dollar Index has recently made an attempt to settle below the nearest support level at 92.10 but failed to gain sufficient downside momentum and rebounded closer to 92.25. The nearest significant resistance level for the U.S. Dollar Index is located at 92.50. If the U.S. Dollar Index moves towards this level, AUD/USD will find itself under some pressure.

Today, Australia reported that Building Permits increased by 15.4% month-over-month in September, in line with the analyst forecasts. There are no other important economic reports scheduled to be released in Australia and U.S. today, so AUD/USD trading dynamics will mostly depend on general market sentiment.

Currently, demand for riskier assets is increasing as traders believe that Donald Trump will not be able to challenge Joe Biden’s victory in the U.S. presidential election and will have to admit defeat soon.

A certain outcome is almost always better for markets than uncertainty, so riskier currencies like the Australian dollar continue to enjoy support from traders who prepare for Biden’s presidency.

Technical Analysis

AUD/USD has managed to get above the resistance at 0.7275 and made an attempt to settle above 0.7300. The nearest resistance level for AUD/USD is located at 0.7310.

If AUD/USD manages to get above this level, it will gain additional upside momentum and head towards the next resistance at 0.7325. In case AUD/USD settles above the resistance at 0.7325, it will continue its upside move and get to the test of the resistance at 0.7340.

On the support side, the previous resistance at 0.7275 will likely serve as the first support level for AUD/USD. A move below this level will open the way to the test of the next support at October highs at 0.7240. If AUD/USD declines below this level, it will head towards the next support level at 0.7210.

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